Kim Kardashian reportedly found herself in legal jeopardy for failing to adequately disclose that she promoted Bitcoin as part of a sponsored promotion in an Instagram Story, according to the Securities and Exchange Commission. The investigation's focal point IG Story was published in June 2021. Do you guys like cryptocurrency? I'm only reporting what my friends told me about the Ethereum Max Token, not offering any financial advice! According to CNN, Kim reportedly posted at the moment to Instagram.
Kim apparently included the hashtag #ad, which is noteworthy. The guidelines are stiffer when advertising cryptocurrencies, even though this would have been sufficient to pass for typical sponsored posts. Gurbir S. Grewal, director of the SEC's Division of Enforcement, stated that anyone who promotes cryptocurrencies "must disclose the kind, source, and amount of remuneration they received in exchange for the promotion" in a press release released by the SEC on October 3.
Investors "have a right to know whether the publicity of a security is unbiased," Grewal continued. Kim was forced to pay the $250,000 back along with prejudgment interest and a $1 million fine because she failed to disclose that she had been paid for her article on EthereumMax's EMAX coins.