Kim Kardashian pays $1.26 million after being charged with illegally promoting crypto scheme - The Verge

Kim Kardashian has been fined $1.26 million for illegally promoting a crypto investment scheme on Instagram. The Securities and Exchange Commission (SEC) says Kardashian failed to properly disclose that she was paid $250,000 to promote EthereumMax.

The Verge homepageThe Verge homepageThe VergeThe Verge logo./Tech/Reviews/Science/Entertainment/MoreMenuExpandThe VergeThe Verge logo.MenuExpandLaw/Policy/CryptoKim Kardashian pays $1.26 million after being charged with illegally promoting crypto schemeKim Kardashian pays $1.26 million after being charged with illegally promoting crypto scheme / Kardashian was paid $250,000 to promote EthereumMax on Instagram. The SEC says she should have told her followers.By James Vincent

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Kim Kardashian has paid $1.26 million after being charged by the Securities and Exchange Commission (SEC) with unlawfully promoting a crypto investment scheme on Instagram.

The SEC says Kardashian failed to disclose the fact that she was paid $250,000 to promote EthereumMax tokens last June. In a series of posts to her Instagram story, Kardashian asked her followers, “Are you guys into crypto??? This is not financial advice but sharing what my friends just told me about the ethereum max token!” Her followers were then encouraged to head to the EthereumMax website and “join the E-Max community.”

Kardashian included a number of hashtags in the posts, including “#ad,” suggesting that the stories were a paid promotion. But the SEC says this level of disclosure is inadequate for crypto investments — resulting in the $1.26 million fine. Federal guidelines on influencer marketing recommend a more aggressive disclosure for Instagram Stories, advising users to “superimpose the disclosure over the picture and make sure viewers have enough time to notice and read it.”

https://www.theverge.com/2022/10/3/23384789/kim-kardashian-crypto-fine-sec-pump-and-dump-ethereum-max


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