The SEC’s ruling against Kardashian’s use of cryptography to warn investors about crypto-currencies and the status of the EMAX token
While Kardashian didn’t admit or deny the SEC’s findings, in an agreement with the regulator, she agreed to not promote any crypto asset securities for three years.
The Securities and Exchange Commission said Monday Kardashian has agreed to pay a fine of $1 million, although she did not admit or deny the S.E.C.’s findings. She will also give back $260,000, which includes her payment from the company with interest.
According to regulators, her post also “provided instructions for potential investors to purchase EMAX tokens.” That is against the anti-touting provision in the federal securities laws.
The problem of celebrity endorsements is not going to be resolved by the SEC punishing every influencer who tweets irresponsibly about crypto. It’s important that they bechoosy in that the resources are limited. It is not possible to go after everyone. If you go after the biggest name, it can be seen that this is a warning shot.
Two years ago, the FTC wrote warning letters to internet stars like the recording artists, reminding them of their obligation to disclose their connections to the products they promote.
Gary Gensler, Chair of the SEC, said that when celebrities endorse investment opportunities, it does not mean that they are right for all investors. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
The SEC found that Kardashian violated the anti-touting provision of federal securities laws. The SEC’s findings were not taken into account by the order.
In a June 13, 2021 Instagram post Kardashian wrote, “Are you guys into crypto? I am sharing what my friends have told me about the token. She added different hashtags, including #ad, along with #emax and #disrupthistory, among others.
What Are Securities Laws? A Commentary on the Case of the Declining NFT, TerraUSD, and UST in the Light of Recent Media and Youtube News
There are many laws related to advertising perfume, vacation homes, and anything on the internet. These are securities laws, he said.
Emily Parker is an editor at The Wall Street Journal and executive director of global content at coinDesk, a media, event, indices and data company. She is the author of a book. Who There are people who are on the internet underground. Her own thoughts are in this commentary. CNN has more opinion.
It was noted last year during the bull market that the mania was driven more by fear of missing out than by sober analysis. TerraUSD and Celsius were just two examples of failures that gave investors the illusion of high returns. Celsius filed for bankruptcy protection, and UST, which was supposed to trade at $1, saw its price drop far lower than that. The once-smoldering NFT market has seen a decline in prices this year.
How do you differentiate winners and losers in a market that is fast changing? It is easy to see how confident a celebrity’s statement could be to a new investor.
“I do think people will be more careful now,” former SEC branch chief Lisa Braganca told me. “This is how the SEC speaks to the world. It has less impact when they make informational videos. When they bring an enforcement action, it makes a loud noise.
The Backlash against Bored Ape Yacht Club: The Case against the FTX Co-Founder and Chief Executive Kevin Faddeev
The backlash started earlier this month, when a class-action suit was filed against celebrities, including Jimmy Fallon, Justin Bieber and Serena Williams for promoting Bored Ape Yacht Club NFTs.
Digital works of art and other collectibles can now be turned into unique, one-of-a-kind, verifiable assets that are easy to trade on the platform’s ledger. The Bored Ape Yacht Club is a collection of 10,000 pieces of digital NFT art living on the ethereum (eth) blockchain.
In its heyday, FTX received endorsements from several athletes and celebrities. Brady and Bundchen, notably, took an undisclosed equity stake in the exchange in 2021.
Investors in FTX are not expected to be able to recover their money, the company’s CEO testified on Capitol Hill Tuesday. As the NFT market has dwindled, people who put in money into Bored Ape NFTs are discovering their investments are not worth it.
The company is in a bad spot, facingbankruptcy and its former CEO is in jail, accused of carrying out one of the biggest financial frauds in US history.