Recently a report was published on Cryptodaily, that The Securities and Exchange Commission (SEC) charged American media personality, Kim Kardashian for failing to disclose that she was paid to tout a cryptocurrency asset EthereumMax on Instagram.
The case was settled by the SEC and Kim Kardashian after she agreed to pay a huge fine of $1.26 million for settlement over the case. She also agreed to cooperate with SEC in an ongoing investigation of this case.
While speaking to Gary Gensler, Chairman of the SEC he said, “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. We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
According to reports Kim Kardashian has agreed to pay this huge fine but she has not accepted any wrongdoing. She has received an amount of $250,000 plus interest for touting the crypto asset EthereumMax on Instagram. Now she will not promote any cryptocurrency on her Instagram account for the next three years.
Gary Gensler also made a public statement about the Kim Kardashian case and he has also made a video and published it on U.S. Securities and Exchange Commission’s Youtube channel under the ‘Office hours with Gary Gensler‘ series.
Through this video, Gensler spread a message to his young audience that “a celebrity or influencer’s incentives aren’t necessarily aligned with yours”. He also said TV and Sports celebrities might not have the proper skills to offer any investment advice to their fans and followers.
After the publication of Gensler’s video, he got more than 3.8K views. Gary is hoping that more and more young people will see this video and think once while doing any investment, especially in crypto and virtual digital assets. Crypto investments are very risky and everyone should be careful while investing in them.