$1.26 million fine for crypto advertising
World-renowned actress and influencer Kim Kardashian has been fined $1.26 million for an Instagram post. She had concealed that she had received a handsome fee for crypto advertising. Now she is no longer allowed to advertise.
With an estimated net worth of $1.8 billion, Kim Kardashian is one of the richest people in the world. The former reality show participant has become an influential entrepreneur and influencer.
Alone on her Instagram account Kim Kardashian gathers over 330 million fans around the world. The 41-year-old also knows that this enormous reach can be easily converted into money. That is why Instagram regularly advertises companies and products.
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Kim Kardashian fined $1.26 million for Instagram post
Such a cooperation literally falls on Kardashian’s feet. The US Securities and Exchange Commission (SEC) has sentenced them to a total fine of 1.26 million US dollars for illegal and unlawful crypto advertising.
That comes from a corresponding press release out. Specifically, the influencer had a crypto asset called “EthereumMax” Applied. The problem with this: The corresponding Instagram post was not marked as advertising.
Influencers must label crypto ads and bonus payments
The SEC stipulates that influencers in the USA indicate that promotional social media posts are paid advertising. This means: You must explicitly point out to potential investors that they will receive money for the promotion.
SEC boss Gary Gensler sums it up again in his verdict:
This case is a reminder that celebrities and influencers are legally required to give credit when they promote investment opportunities and have been paid to do so. You must disclose the amount of the payment and the advertiser.
The stock exchange supervisory authority is concerned with showing small investors as detailed, quickly and comprehensibly as possible how high the risk of an investment is in order to protect their financial resources.
Kim Kardashian was banned from advertising for three years
Kim Kardashian is now facing a $1.26 million fine for knowingly violating some of these legal bills. The amount consists of the fee of 250,000 US dollars, the penalty interest and the fine of over one million US dollars.
But that’s not all: The influencer is not allowed to advertise any cryptocurrencies or products from the crypto sector for the next three years. The indirect fine should therefore be significantly higher.
Spain: Influencers must register crypto advertising
At the beginning of the year, the Spanish government decided by law that large influencers must register their advertising campaigns for cryptocurrencies in advance.
The ten-day written lead time is intended to ensure that any course manipulations by influential people with at least 100,000 fans are made significantly more difficult.
In theory, influencers can buy the promoted cryptocurrency before a promotion and sell it profitably after the promotion. Among them, unfortunately, are the small investors, because the prices fall sharply after large sales.
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