Crypto

Kim Kardashian Fined $1 Million Over Illegal Crypto Ad

K

im Kardashian was fined $1 million by US markets watchdog for illegal crypto advertising.

The model and businesswoman was paid $250,000 to post a post on her Instagram page advertising EthereumMax crypto tokens. The U.S. Securities and Exchange Commission said Kardashian posted a link to the EthereumMax website but did not disclose the payment she received for the promotion.

SEC Chairman Gary Gensler said, “This case is a reminder that when celebrities or influencers endorse investment opportunities, including crypto asset securities, it does not mean that those investment products suitable for all investors.”

Gurbir S. Grewal, Director of the SEC’s Enforcement Division, said, “Investors have a right to know whether a security’s publicity is unbiased, and Ms. Kardashian has withheld that information.”

The SEC said Kardashian agreed to pay $1.26 million, which is her promotional payout, plus prejudgment interest and a $1,000,000 penalty. Kardashian also agreed not to promote any crypto asset titles for three years.

Gensler posted a video on YouTube warning investors not to make investment decisions based on celebrity or influencer recommendations.

“Celebrity endorsements don’t mean an investment product is right for you, or even, frankly, legit,” he said in the video.

“We might enjoy watching a celebrity play on a basketball court, star in a reality TV show or a movie…we shouldn’t confuse those skills, however, with the very different skills needed to offer investment advice. appropriate.”

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