Kim Kardashian will pay over $1M to settle charges over promoting a cryptocurrency without stating she was paid $250k for promotion. Floyd Mayweather and Paul Pierce were sued as well by investors.
In recent years, cryptocurrency has been a hot-button topic on social media with people split 50/50 on whether or not it’s the future. While many investors have educated themselves and started investing early leading to them having good luck and financial gains, some aren’t so lucky.
During the peak of crypto marketing, many celebrities were paid to promote up-and-coming crypto and some even unknowingly promoted alleged pump and dump schemes. Now the SEC is taking a deep dive into crypto and certain celebs are facing consequences.
Kim Kardashian Pays $1M To Settle SEC Charges Over Cryptocurrency Promotion
Part of the SEC’s deep dive led them to uncover some celebrities, if not most, did not disclose that they were paid when promoting new cryptocurrencies.
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it doesn’t mean that those investment products are right for all investors,” SEC Chair Gary Gensler said. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
Kim’s lawyer also released a statement and essentially stated that Kardashian just wanted to put this behind her and move on.
“Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter,” her lawyer said. “She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits.”