Unfair crypto advertising: million-dollar fine for Kim Kardashian

In the case of celebrities who make recommendations for products or other purchases on social media channels, many people are now becoming wary, because the likelihood is high that the influencers are simply advertising for payment without any real knowledge or conviction of their own behind it. But these measures do have an effect and must therefore be officially labeled. Reality star Kim Kardashian apparently failed to do so - and has now been fined millions by the US Securities and Exchange Commission. According to Deutsche Presse-Agentur, the U.S. Securities and Exchange Commission (SEC) said Kardashian must pay $1.26 million (1.29 million euros) in fines and compensation as part of a settlement. Specifically, the regulators accuse her of recommending a cryptocurrency on Instagram without disclosing that she received $250,000 in return. The SEC has been warning investors for years about dubious investment tips from celebrities with high online reach - especially when it comes to highly speculative and often laxly regulated crypto investments. In 2018, the U.S. Securities and Exchange Commission had already slapped boxing star Floyd Mayweather and hip-hop producer DJ Khaled with hefty fines for making unfair paid promotions for digital currency deals on their social media channels.