The United States Securities and Exchange Commission (SEC) fined $1.26M against Kim Kardashian (Influencer & Reality TV Star) for not disclosing the amount she received for promoting a cryptocurrency on her Instagram post.
Kardashian shared a link to the EthereumMax website for potential cryptocurrency investors to purchase EMAX tokens and for that she was paid $250,000 to publish the post.
According to Forbes, “Kim Kardashian is reported to be worth nearly $2 billion”
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it doesn’t mean that those investment products are right for all investors,” SEC chair Gary Gensler said in a statement. “Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.”
As per SEC Kardashian violated the federal securities laws and now she is not allowed to promote any crypto assets for the next 3 years for which she agreed.
US SEC Chairman Gary Gensler released a video on 3rd Oct, 2022 warning the investors not to make any kind of investment decision based solely on the recommendations of a celebrity or influencer.