Be Careful Taking Investing Advice From Celebs on Instagram, SEC Warns
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Let Kim Kardashian’s $1.26-million penalty for improper crypto promotion be a warning to think twice before you follow investment advice from celebrities, the U.S. Securities and Exchange Commission said Monday.
The agency announced charges against the mega-influencer related to a June 2021 Instagram ad she posted about a crypto asset security sold by EthereumMax, which describes itself as a decentralized finance project. The SEC alleged that Kardashian failed to properly disclose that it was a paid, sponsored post. (Kardashian agreed to pay the $1.26 million settlement without "admitting or denying the SEC’s findings," per a news release.)
“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 in the release.
