How Crypto Twitter Reacted to Kim Kardashian’s $1.26 Million SEC Fine

by · October 3, 2022

The crypto community reacted with a mixture of disbelief and amusement after reality star Kim Kardashian was fined for promoting the cryptocurrency EthereumMax (EMAX).

The United States Securities and Exchange Commission (SEC) fined Kardashian $1.26 million on October 3 for “speaking on social media” about EMAX without disclosing that she was paid $250,000 to write about it.

Kardashian has neither admitted nor denied the SEC’s allegations, but settled the charges and agreed not to promote any cryptocurrency assets until 2025.

SEC Chairman Gary Gensler tweeted that the fine was a reminder that celebrity endorsements of investment opportunities do not “mean that these investment products are right for all investors.”

Following Gensler’s tweet, the online crypto community expressed its thoughts on the fine, with some calling out the SEC for its inconsistent enforcement decisions.

Economist Peter Schiff, known for his anti-Bitcoin (BTC) stance, pointed out what he perceived to be an unfair targeting of Kardashian as the SEC has not fined MicroStrategy co-founder Michael Saylor, who he believes has “more to gain from pumping crypto. “

Saylor black saying that Bitcoin is not a security but a commodity, and its promotion would be “akin to promoting steel … or granite,” and the coin’s open protocol offers “utilitarian faith similar to roads.”

Crypto personality and author Layah Heilpern shared she opined that “the SEC has bigger problems closer to home, it should probably focus on…” likely suggesting the widespread belief in society that certain American politicians have acted.

The pseudonymous developer 0xBender noted a contrast between the SEC’s heavy-handed treatment of celebrity crypto campaigns, while cryptocentric influencers “have been out here swindling you garbage for 0.2 ETH (Ethereum) a tweet.”

Others such as former federal prosecutor Renato Mariotti said influencers thinking of supporting cryptocurrencies should “take note” as the regulator shows it will “aggressively pursue enforcement actions” and those promoting crypto without considering the laws will “need to find a good lawyer.” “

Meanwhile, Ethereum guru and investor Anthony Sassano told his followers that he believes the SEC targeted Kardashian because it creates the illusion that the regulator is “doing something” about crypto fraud, and suggested it should have targeted the creators of EMAX instead.

Related: SEC bullies Kim Kardashian, and it could chill the influencer economy

Still, some saw the lighter side of investing in a tumultuous and highly speculative crypto token, with journalist Tyler Conway saying the star “got the full crypto experience” by losing more money than she was paid.

Self-described hacker and tech content creator Marcus Hutchins said Kardashian “would have gotten better returns” in EthereumMax, as it’s down 97% since her post, compared to the -80% the campaign gave her.