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Kim Kardashian has become the highest-profile celebrity/influencer yet to be charged over a crypto promotion on social media. US financial regulator the SEC filed charges against Kardashian for “touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion” – said fee being $250k.

Kardashian has already agreed to settle the case with a $1.26m payment. She will also cooperate with the SEC’s ongoing investigation into such matters, and has agreed not to promote any more crypto asset securities for three years.

The news is the latest warning for any celebrity or influencer – including musicians – about how certain crypto promotions could land them in hot water.

“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” said SEC chair Gary Gensler. “Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.”

It certainly gives the ‘are NFTs a security?’ debate a pinch of added spice…

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Stuart Dredge

Music Ally's Head of Insight

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