Crypto has managed to find its way to the mainstream, with numerous celebrity endorsements from A-listers such as Matt Damon. Kim Kardashian was one such celebrity crypto-peddler. However, the reality TV star recently ran into controversy for her crypto advertisements.
Following Kim K’s crypto push, the celebrity has been fined $1 million for improper disclosure. This isn’t the first time a celebrity got in trouble for their crypto-related issues. Will it be the last?
Kim Kardashian wasn’t honest enough with her crypto partnership
According to Variety, Kim Kardashian should have disclosed that she was earning $250,000 for the crypto promotion she did. Because of her improper disclosure about the currency, she has been fined $1.26 million, which isn’t much for Kim.
“Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax. Kardashian’s post linked to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens,” the SEC said in a statement.
Her promotion for EMAX tokens took place last June when she asked her followers if they were interested in crypto. Obviously, this ended up being a mistake for Kardashian but it seems like she got off easy, given her wealth.
SEC warns celebrities and endorsers
Now that the Kim Kardashian crypto debacle has died down, the SEC decided to warn others about promoting the currency. Obviously, they didn’t tell them to stop endorsing the currency, but that they should be more honest with their promotions.
“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 chairperson Gary Gensler said in a statement. “Ms. 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.”