SEC charges Kim Kardashian for Instagram crypto promotion
The settlement reached with the SEC by Kardashian includes a $260,000 payment that represents that original amount, plus interest, as well as $1 million in penalties. Kardashian has also agreed to cooperate with an "ongoing investigation" by the Commission.SEC chair Gary Gensler immediately took to Twitter, warning investors not to make investment decisions based solely on the recommendations of a celebrity or influencer.
The action is likely to lead to further punishments for other celebrities and influencers who have cashed in on the crypto asset craze."The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion," says Gurbir S. Grewal, director of the SEC’s Division of Enforcement.
"Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information."
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