Why Kim Kardashian was charged by the SEC for crypto advertisement
Mega-influencer Kim Kardashian agreed to pay $1.26 million in penalties to the Securities and Exchange Commission to settle charges that she illicitly touted a cryptocurrency token on social media without disclosing how much she was paid for the promotion, the SEC said Monday. In June 2021, Kardashian posted an Instagram story inviting her 328 million followers to invest in EthereumMax. “This is not financial advice ,” Kardashian wrote in her story. “But sharing what my friends just told me about the Ethereum Max token!” Among other hashtags, she included the word “ad.” Kardashian was one of many celebrities who were part of a crypto craze last year, which included intense interest in and advertising and funding of cryptocurrencies and their related technologies. Cryptocurrencies are digital assets , such as Bitcoin, that can be bought and sold via cryptocurrency exchanges . EthereumMax is a cryptocurrency token , which is a tradable asset built on pre-existing cryptocurrency technol...