Kim Kardashian Crypto Ad Controversy
Kim Kardashian has been fined $1.26 million by the US Securities and Exchange Commission (SEC) for not disclosing that she received payment for an ad about crypto token EthereumMax on her social media accounts.
This might indicate that the SEC plans to impose more restrictions on the cryptocurrency industry. Unexpectedly, Kim Kardashian was penalised by the SEC for allegedly participating in this cryptocurrency "pump and dump" scheme.
Kim Kardashian barred from endorsing cryptocurrencies for three years
This became a legal issue because the Kim Kardashian crypto ad was a planned marketing strategy. One more surprising factor is that the lengthy list of influencers endorsing cryptocurrencies has been condensed.
Since it may cause additional problems for other celebrities who have supported cryptocurrency or wish to do so in the future, this story has attracted much media attention.
The $1.26 million amount accounts for the $250,000 she received for the marketing and interest and a $1 million penalty. She also consented to refrain from promoting cryptocurrency assets for three years while helping with the current inquiry.
The crypto industry is facing a strong bear market. There is a fear that we could see more legal disputes and litigation in the future, ultimately leading to more blood baths in the crypto space.
A long list of celebrities has faced similar controversies
Elon Musk has been sued for $258 billion over allegations that he created a pyramid scheme to market Dogecoin. Also, Floyd Mayweather Jr. and DJ Khaled have been charged with promoting initial coin offerings (ICOs) without letting their followers know they had been paid to do so.
What does this controversy mean for the Bitcoin and crypto industry?
The SEC released a video advising the public to exercise caution when following investment advice from well-known people and social media influencers.
Other celebrities and influencers could also avoid advertising ICOs due to the Kim Kardashian crypto ad controversy, which could somewhat mean lower exposure to new coins.
However, this news doesn't mean anything to Bitcoin prices and other crypto coins. But we could soon see more regulations from the SEC.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.