Thursday, December 8

US fines Kim Kardashian for surreptitiously advertising cryptocurrencies on Instagram

The United States Securities and Exchange Commission (SEC) has fined 1.26 million dollars (a similar figure in euros) to the ‘influencer’ and businesswoman Kim Kardashian for having promoted a crypto asset in her account of Instagram without having revealed that it was paid advertising. As part of the sanction, Kardashian has agreed to continue cooperating with the SEC in the investigation, although the payment does not imply accepting or denying the facts investigated. Likewise, she will not promote any other crypto assets for the next three years.

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According to investigations by the United States financial regulator, Kim Kardashian promoted the EMAX token, offered by EthereumMax, on her Instagram social network account, including a link to her website to buy it. The ‘influencer’ received a payment of 250,000 dollars for it, but at no time did she indicate that it was advertising.

“This case is a reminder that when celebrities or ‘influencers’ support investment opportunities, including crypto-asset securities, it does not mean that those investment products are suitable for everyone,” said SEC Chairman Gary Gensler. According to the current regulations on securities of the North American country, anyone who promotes crypto assets must report who and how much they have been paid for it.

Relying on celebrities to promote themselves among the public not specialized in financial investments is a common strategy in the crypto sector. In Spain, the National Securities Market Commission (CNMV) has also increased supervision over cryptocurrency advertising by relevant media figures, whether paid or not.

One of the most recent notices from the regulator in this regard was against an event aimed at advertising cryptocurrencies to young people. This was going to be conducted by Cristina Pedroche and the presenter of La Ruleta de la Fortuna, Jorge Fernández, who were finally deleted after the CNMV alert.