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Oftentimes celebrities do promote crypto because they see the potential in this new technology and believe in its future success.
As the popularity of the crypto market increased in recent years, more and more famous people are involved in the crypto promotion. These include the likes of John McAfee, Elon Musk, and even Paris Hilton. As these people have millions of followers on different social media platforms, it is easier to make people more interested in crypto. In addition to promoting crypto on social media, these famous persons also often participate in conferences and other events that help raise awareness about digital currencies.
Even though promotion is not banned, Kim Kardashian was fined for that.
Why Was Kim Kardashian Fined?
There are a few occasions where a person can be fined because of crypto promotion on social media. One instance is if the person is promoting a pyramid scheme or other fraudulent activity. Another instance is if the person is breaking local laws regarding financial promotions.
Kim Kardashian did not break any mentioned rules. She was fined because she promoted crypto without disclosing that she was being paid to do so. The Federal Trade Commission said that her posts on social media gave the impression that she was an unbiased endorser of the digital currency when, in reality, she was being paid by a company to promote it.
The Federal Trade Commission (FTC) has announced that Kim Kardashian West will pay a 1.26 million USD penalty for promoting a cryptocurrency scam.
Kardashian West promoted the scheme on her Twitter account, which has over 73 million followers. The FTC alleges that she did not disclose that she was paid to promote the scheme.
"When people see celebrities or other influencers tweeting about something, they assume it must be legitimate," said Andrew Smith, Director of the FTC's Bureau of Consumer Protection. "This case shows that celebrity endorsements can be misleading if consumers don't know they're being paid."
It is important to note that Kim Kardashian was not the only case during this period. There were some other celebrities such as Matt Damon, Reese Witherspoon, Gwyneth Paltrow, and Larry David who promoted crypto in the exact same way as Kim K did, but they were not fined.
There are a few reasons why these celebrities were not fined for promoting crypto. First, the SEC has only recently begun cracking down on celebrity endorsements of ICOs. Second, it's possible that these celebrities did not receive any compensation for their endorsement, which would mean that they didn't violate any laws. Finally, it's also possible that the SEC is simply waiting to see if the crypto industry self-regulates before taking any action against celebrities who promote ICOs.
What Kim Kardashian And Other Celebrities Said About The Penalty Case?
It is logical that Kim Kardashian was not happy about her recent crypto penalty. The reality star posted her opinion on her Twitter account. In the post, she said that this penalty was just ridiculous. Some people have said that it is too harsh, while others believe that she deserved it. Here are some other famous people who have spoken out about the situation:
"I think it's unfair. I don't think she did anything wrong." - Kanye West
"It's just not right. She was trying to help people." - Kylie Jenner
"She didn't do anything wrong. She was just trying to help her fans." - Kris Jenner
It is interesting that Kim Kardashian has been fined multiple times for promoting cryptocurrencies. The most recent incident was in 2019 when she was fined $100,000 by the US Securities and Exchange Commission for promoting a crypto-based investment product. Kim K is not the only exception, the Kardashian family has been fined multiple times for promoting cryptocurrency. They have been fined for not disclosing their involvement in initial coin offerings, and they have also been accused of pumping and dumping digital currencies.
All we can say about the final news for this case is that Kim Kardashian has not made any public statements about paying a penalty for crypto promotion. After the Twitter post, she had not made any comment similar to the SEC.