image source
In 2018 the Sec started focusing on Crypto Influencers who were being paid to promote crypto currencies as their large followings would often buy into what famous celebrities were spruiking without much thought with the end result being that a lot of people got rekt.
No doubt the SEC decided to focus in on social media influencers and celebrities monitoring and auditing their role in promotion of crypto currencies.
Since 2018 a number of celebrities have been caught out promoting cryptocurrencies and been handed down some heavy fines and most recently the SEC has produced a media release that they have prosecuted none other than Kim Kardashian.
According to the media release Kim Kardashian was paid $US250,000 to publish a promotional social media post for the Ethereum token EMAX. The post included instructions on how to purchase the token however Kim failed to notify her following that she was being paid to promote the token. The SEC alleges that Kim exposed potential investors to risk in doing so.
As a result Kim has been fined $US1,000,000 ordered to pay a disgorgement of $US260,000 including interest estimated to total around $US1.5 Million. This has resulted in the SEC releasing a video warning potential buys of risks and dangers associated with following celebrity advice.
Kim isn't the first celebrity to be fined for promoting Crypto Currencies with Steven Seagal being fined $US300,000 back in 2020 for promoting crypto and banned him from doing so for three years.
Floyd Mayweather Jr was also fined for doing so including DJ Khaled for failing to disclose their payments for the promotions.
So it seems celebrities aren't off the hook when it comes to the SEC and influencers beware when it comes to Crypto Currency be sure to disclose your financial payments for your posts.
What are your thoughts on the matters? do you think Crypto currency is no different to any of the other products celebrities are paid to promote that don't normally inform people they are being paid to do so. This usually comes under the "sponsorship" category.
Or was the SEC right to clamp down on celebrities, influencers and the like?
Crypto currency is a risky investment and you should always do your research and be diligent especially when it comes to personal finances.
Image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services