Alberts Comments on SEC’s Kardashian Crypto Fine
Pryor Cashman Partner Jeffrey Alberts, who co-heads the firm’s FinTech Group, spoke with Crowdfund Insider about the U.S. Securities and Exchange Commission’s enforcement action against Kim Kardashian for her social media promotion of the EMAX cryptocurrency.
In “Legal: Top Attorneys Comment on Kim Kardashian’s Crypto Promotion Penalty Courtesy of the SEC,” Jeff said:
The penalty imposed on Kim Kardashian underscores the risk that celebrities face when they become involved in promoting crypto assets:
Often, it does not even occur to the celebrities that they are promoting securities.
Even if they are aware that some crypto assets are securities, they sometimes receive false assurances that the crypto assets they are promoting are not securities.
In addition, celebrities often are unaware that they could face securities enforcement from agencies located in countries where they do not reside. While this enforcement action involves the U.S. Securities and Exchange Commission, Ms. Kardashian previously was criticized by the U.K.’s Financial Conduct Authority for her promotion of EthereumMax token. Regardless of where they reside, celebrities who promote the sale of crypto assets should consider the risk of enforcement actions from authorities in the U.S., as well as enforcement agencies outside the U.S., before promoting those assets, particularly if they do not disclose that they received payments for the promotion.
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