Kardashian’s $1m Fine Is A Warning To All Influencers

Justin Freeman

midday update forex news

  • Kim Kardashian agrees to pay a $1.26m fine to SEC
  • The influencer failed to disclose a payment she received for touting a crypto asset on her Instagram feed
  • The settlement between Kardashian and the U.S. regulator is a warning to all other influencers

Kim Kardashian’s efforts to pocket some easy money by plugging a crypto asset to her followers has landed her in hot water with one of the most hard-nosed regulators in the industry.

Kardashian Falls Foul of U.S. Securities and Exchange Commission

The reality TV superstar’s antics involved promoting EthereumMax’s crypto asset without telling her 334 million Insta followers that she was receiving a $250,000 fee for doing so. While the crypto market is itself unregulated, that breached the SEC’s guidelines to a sufficient extent that the authority could intervene.

“Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.”

Source: SEC

Kardashian is nursing a +$1m loss on her venture and is also having to devote time to demonstrate that she is following market rules. There is also the reputational damage to consider. While it’s game over for Kardashian, it could just be the start of the story for other influencers who are now under scrutiny by the SEC.

HEX, Pulsechain and PulseX in the Spotlight

The SEC has reportedly issued a subpoena to influencers who are alleged to have been promoting cryptocurrencies such as HEX, Pulsechain and PulseX. The names of the suspect influencers aren’t yet public but are known by the SEC, which has contacted them directly. The SEC’s letter to them states:

“We believe that you may possess documents and data that are relevant to an ongoing investigation being conducted by the staff of the United States Securities and Exchange Commission.”

(Source: Cryptosrus.com)

The letter was accompanied by a subpoena issued as part of the investigation. In what is rapidly becoming a crypto ‘whodunnit’, those in question must have produced the required documents by November 15, 2022. There is no further statement from the SEC regarding when updates might be made public.

Amid the excitement, the significant development is that the move reflects a major shift by the SEC to intervene in such cases. It’s getting past the issue of coins being previously regarded as outside its remit. SEC Chair Gary Gensler stated that the commission’s enforcement staff are “public servants” and “cops on the beat” who were “uniting public zeal with unusual capacity.” (Source: Cryptosrus.com)

 

Crowdsourcing information about scam brokers can help others avoid falling into the traps set by disreputable brokers and you can share your experiences here. If you would like to know more about this particular topic, or have been scammed by a fraudulent broker, you can also contact us at [email protected]


Justin Freeman

Latest news

Forex vs Crypto: What’s Better For Beginner Traders?
The crypto and forex markets are two of the world’s most popular among investors and traders. Read more
Three Great Technical Analysis Tools for Forex Trading
You don’t have to be very technical minded to make use of technical analysis in your forex trading. Read more

Safest Forex Brokers 2024

Broker Info Best In Customer Satisfaction Score
#1 73% of retail CFD accounts lose money. Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
4.9
#2 Blackbull LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#3 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#4 plus500 logo81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Provider
Number One Broker
Best Trading App Visit broker
5
#5 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#6 Forex Broker eToro Logo76% of CFD traders lose money Founded: 2007 Global CFD & FX Broker
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#7 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#8 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker

    Forex Fraud Certified Brokers

    FxPro logo
    eToro Logo
    BlackBull Logo Small
    plus500 logo
    XM Logo
    AvaTrade logo
    FXTM Logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.