KimKardashian is being charged by the SEC for "unlawfully promoting" a "crypto security" The SEC said that she was in violation of its rules when she promoted a product that was not disclosed that she was paid to do so.
The case will be settled with a penalty payment and the SEC investigation will continue.
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
The agency said that she should have disclosed the payment she received for the post. A $260,000 payment, plus interest, and $1 million in penalties are included in the settlement with the SEC.
The chair of the SEC posted a message on the social networking site saying that celebrity endorsements shouldn't be seen as financial advice. It's possible that this is a shot across the bow that indicates more enforcement activity is on the horizon for high-profile celebs who peddled assets to fans.
Other new technologies that mirror traditional securities in form and function are also thought to fall under securities laws. This is a great way to get the SEC's attention.
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