Curriculum·Graduate·G703
Disclosure Ethics and How Crypto Educators Get Compromised
Kim Kardashian and EthereumMax, 3 October 2022. The Commission found that Kardashian had been paid $250,000 to publish an Instagram post about EMAX tokens, the crypto asset security offered by EthereumMax, with a link to the project's site and purchase instructions, and, although the post carried #AD, had not disclosed that the issuer paid her or how much.
Lesson 1 opens on
Kim Kardashian and EthereumMax, SEC order of 3 October 2022
The Securities and Exchange Commission announced charges against Kim Kardashian for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion. The order found that she had been paid $250,000 to publish a post on her Instagram account about EMAX tokens; the post contained a link to the EthereumMax website with instructions for buying the tokens.26 million in penalties, disgorgement and interest, to cooperate with the Commission's investigation, and not to promote any crypto asset security for three years.
The lessons
- G703-01The compensated voiceState what the Commission found in the Kardashian order, what she was paid, what she paid, and what the violation wasabout 32 min · opens on Kim Kardashian and EthereumMax, SEC order of 3 October 2022
- G703-02Directed silence: when the sponsor tells you not to discloseState what the Commission alleged against Justin Sun's companies and the eight celebrities, including the instruction not to discloseabout 31 min · opens on SEC v. Justin Sun, Tron Foundation, BitTorrent Foundation, Rainberry, and eight celebrities, 22 March 2023
- G703-03The educator who became the funnelState what the BitConnect promoter admitted, what he earned, what the scheme took, and what he was sentenced toabout 31 min · opens on United States v. Glenn Arcaro, BitConnect, guilty plea 1 September 2021
- G703-04The disclosure rule you will actually followState what the court found in the Sparkster case about the influencer's role, and what the compensation was that went undisclosedabout 32 min · opens on SEC v. Ian Balina, partial summary judgment, 22 May 2024