The reality television star and influencer Kim Kardashian is grabbing mass attention, but this time for crypto. We often find her endorsing a wide array of products from toilet paper to liqueur; well, her debut in crypto mutilated her image. Recently, the SEC (Securities and Exchange Commission) charged Ms. Kardashian $1.26 million as a penalty for touting crypto on her Instagram. Per reports, the celebrity had almost 225 million followers when she endorsed the product.
Kim Kardashian, under a legal spell
Often crypto companies target celebrities to encourage people to invest in a specific digital asset scheme. The SEC, upon investigation, undermined that the popular television figure Kardashian published a post that violated the law. One of her Instagram posts found touting EthereumMax, which she mentioned was suggested by her friend. SEC took legal action based on the lack of disclosure by the celebrity to reveal the amount she was paid to advertise the product.
Per sources, Kim got almost $250,000 for publishing a crypto promotional post. As she has a huge fan base, so SEC imposed a high penalty and warned her not to get involved in any crypto securities for three years. Kim didn’t wish to drag the case and agreed to pay the charges as the influencer was in no mood to ruin the good image she had maintained so far.
Celebrity crypto endorsement affects investor’s decision
While shedding light on the Kim Kardashian case, Gary Gensler, the chairman of the Securities and Exchange Commission, shared a video on Twitter warning investors not to base their investment decision on celebrities associated with the product. Instead, they should thoroughly enquire about the asset before staking hard-earned money.
He further stated that if a popular personality endorses a crypto product, it’s not necessarily a profitable deal for you. Kim is not alone in these unlawful crypto asset promotions; instead, the list is pretty long; famous figures like football star Tom Brady and actors like Matt Damon too dipped their toes into the mushy crypto endorsement schemes.
We request you conduct extensive research on a crypto firm and pay less heed to its famous face. Be diligent enough to make the right decision when investing your hard-earned money in any crypto asset.