The SEC fined Kim Kardashian $1.26 million for touting cryptocurrency on her social media. It’s typically fine for celebrities and influencers to endorse investment opportunities. We often see many celebrities promoting headphones or makeup with the #ad in the post.
Kim Kardashian crossed the line when she endorsed a crypto asset security. If you’re promoting the company, the only rules that apply are the ones from the FTC. If you’re touting a cryptocurrency, different laws will apply. Disclosing that you were paid — as Kim did with an #AD hashtag — is not enough; you also need to disclose how much you were paid.
October 4, 2022