Photo: instagram.com/kimkardashian/
Kim Kardashian, a budding lawyer, has been fined a huge sum of money for an Instagram ad.
The US Securities and Exchange Commission (SEC) has fined Kim Kardashian $1.26 million for illegally promoting cryptocurrency on her Instagram profile without disclosing that she was paid $250,000 for it.
Kim promoted EthereumMax via an Instagram post last year and, in line with her punishments, agreed not to engage in any crypto endorsements for the next three years.
A video was posted on Twitter of SEC Chairman Gary Gensler warning social media users to be careful when making investment decisions based on what products influencers and celebrities are selling online. "Celebrity endorsements don't mean an investment product is right for you, or even legitimate," Gensler said.
Kardashian used a number of "hashtags," including #ad (#ad), suggesting the posts were paid promotion. However, the SEC says this is not enough.
Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.
— Gary Gensler (@GaryGensler) October 3, 2022
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.
Kim Kardashian's attorney said, “Kim is pleased to have resolved this matter with the SEC. She has fully cooperated with the SEC from the beginning, and remains willing to do whatever she can to assist in this matter. She wanted to put this matter behind her to avoid a protracted dispute."
