It wasn’t that long when the United States Securities and Exchange Commission (SEC) caught the well-known US businesswoman and celebrity promoting a crypto project on her Instagram profile.
The SEC said the reality TV star had received $250,000 for advertising the cryptocurrency, without disclosing she had been paid to do so.
The lawyer said: “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.
“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.”
Crypto Pump and Dump Promotions
With constant changes in the marketing and advertising industry, crypto investors face a host of issues. Crypto assets can provide exciting new opportunities, offering people new ways to transact and invest. There is no shortage of stories of people who have lost savings by being lured into the crypto bubble with delusions of quick riches, sometimes after listening to their favorite influencers, ready to betray their fans’ trust for a fee.
“The federal securities laws are clear that any celebrity or other individual who promotes a cryptoasset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion,” said Gurbir Grewal, director of the SEC’s enforcement division. “Investors are entitled to know whether the publicity of a security is unbiased, and Ms Kardashian failed to disclose this information.”
Kardashian’s fine comes as the SEC has turned up the heat on the crypto industry in recent months. Gensler has been outspoken on the need to regulate the sector, saying in a recent speech that “Detroit would not have taken off without some traffic lights and cops on the beat”.