Just now, there are fewer famous people who are promoting cryptocurrencies. Kim Kardashian will have to pay a $1 million fine and can’t recommend crypto securities to her 330 million Instagram followers for three years. This is to settle federal charges that she did so without making it clear that she was paid to do so.
The reality TV star must also give back the $250,000 she was paid for the Instagram post about Ethereum Max tokens, plus interest, according to a deal she made with the Securities and Exchange Commission on Monday. Kardashian is the latest famous person to get caught up in rules that say people who get paid to promote financial products have to tell the truth.
In 2020, actor Steven Seagal and the SEC came to a similar agreement. He agreed to pay more than $300,000, and for the next three years, he couldn’t promote investments.
Floyd Mayweather Jr., a professional boxer, and DJ Khaled, a music producer, were accused by the SEC of lying about the money they got for recommending investments in a digital currency. In 2018, the SEC reached a settlement with both men.
Kim Kardashian was fined $1 million
Many famous people and athletes advertise cryptocurrency on TV and online in ways that don’t break the law. Matt Damon, Tom Brady, Reese Witherspoon, and Gwyneth Paltrow have all used their fame to get more people interested in cryptocurrencies.
In a statement, Gary Gensler, the head of the SEC, said that the Kardashian settlement “serves as a reminder to celebrities and others that the law requires them to tell the public when and how much they are paid to promote investing in securities.”
Gensler also used the high-profile settlement with a celebrity on Monday to teach the public something. He put up a funny video on YouTube that tells people not to take investment advice from rich and famous people. ” Bravo to SEC Chairman Gensler, whose action shows that no celebrity, no matter how big or famous, who made money by pushing risky cryptocurrency investments shouldn’t be able to just walk away. Adam Moskowitz, a lawyer who is suing Mark Cuban on behalf of a group of people for promoting Voyager Digital before it failed, said: The SEC said that Kardashian agreed to help with an investigation that was already going on, but it didn’t say what that investigation was about.
Patrick Gibbs, Kardashian’s lawyer, said that she has “fully cooperated with the SEC from the beginning, and she is still willing to do whatever she can to help the SEC with this case.”
Kardashian is known for her role in “The Kardashians,” but she is also a successful businesswoman with clothing and skincare brands.
During the pandemic, the prices of many cryptocurrencies went up because a lot of very risky investments were made. As markets have gone down recently, so has the value of many cryptocurrencies.
Since 2022, Bitcoin has lost more than half of its value. On Monday, it was worth only about $19,000.
The Ethereum Max token that Kardashian promoted has lost more than 90% of its value since May when it was worth the most.
The SEC and Congress are paying more attention to the crypto industry after wild price swings and dozens of scams were found in it. Last month, lawmakers from both parties came up with a plan that would give the Commodity Futures Trading Commission the power to regulate bitcoin and ether, two of the most popular cryptocurrencies.
In this story, the spelling of the actor’s last name has been changed. The name of this man is Steven Seagal, not Segal. The CFTC has also changed its name. It’s called the Commodity Futures Trading Commission, not the Commodities Futures Trading Commission.
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