Why Was Kim Kardashian Charged by the SEC
Kim Kardashian’s October 2022 SEC complaint for marketing a cryptocurrency without disclosure made news. Concerns about influencers’ and celebrities’ obligations while promoting financial goods were brought up by the case. In addition to significant financial fines, the incident acted as a reminder to the influencer community of the value of openness in advertising.
The Promotion of EthereumMax
One of the most powerful people in the world, Kim Kardashian, advertised EthereumMax, a cryptocurrency, on her Instagram page. She had more than 300 million followers, so her endorsement made a big difference. The fact that Kardashian had received $250,000 for this advertising was first unclear to her audience. The main reason the SEC had a problem with Kardashian’s tweet was that she had not disclosed this payment in advance.
Federal Securities Law Violation
Kardashian was charged by the...