Kim Kardashian settled with the Securities and Exchange Commission for more than a million dollars after a government program stated that she made a serious mistake when promoting the EthereumMAX cryptocurrency.
There is no denying that 2021 was an important year for cryptocurrency. For the first time since its inception, this concept has found broad public support and has begun to penetrate popular culture like never before. While the hype was very exciting for the participants, it also meant that more and more people jumped on the hype train a little faster than they might otherwise have.
Kim Kardashian was one of those names, and although she never pleaded guilty to anything, she agreed to pay the SEC the money they requested in connection with the EthereumMAX ad she posted on Instagram in June 2021.
Kim Kardashian paid the SEC more than a million dollars after a dispute about cryptocurrency
The post in question was published in the Kardashian story in IG and began with the words “Guys, are you into cryptography? This is not financial advice, but what my friends just told me about the Ethereum Max token!”
Although the end of the message did contain the “#ad” required by Meta (and the US government) to distinguish sponsored messages from regular recommendations, the SEC felt that it had not made proper efforts to make it clear that it had paid for the promotion.
Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.
This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.
— Gary Gensler (@GaryGensler) October 3, 2022
SEC Chairman Gary Gensler took to Twitter and took the moment to remind everyone that just because a celebrity supports a product or opportunity doesn’t mean it’s right for every investor.
Kim K is not alone in legal problems related to cryptocurrency, as investors have previously sued her, as well as Basketball Hall of Fame member Paul Pierce and legendary boxer Floyd “Money” Mayweather due to “artificially inflating” the value of the same coin earlier this year. .