Why Celebrities Like Kim Kardashian Faced SEC Actions in 2023

Kim Kardashian, Lindsay Lohan and Stoner Cats were just some names and entities that face the ire of the SEC this year. You're watching a special edition of Coin Desk Daily. I'm Jen Sani. In 2023 numerous firms were targeted for allegedly offering unregistered securities through crypto asset lending or staking programs. These included Genesis Gemini Celsius, Kraken and Nexo Krin and Nexo ceased their programs with crack and paying a $30 million fine. And Nexo agreeing to a $22.5 million fine. The NCC its first actions against NFT projects this year, Impact Theory and Stoner cats were both charged and ended up settling without admitting or denying guilt. Impact Theory agreed to a fine of more than $6 million. While stoner cats agreed to pay a $1 million fine. Both companies agreed to a fair fund to return monies to injured investors and to destroy NFTS in their possession. And Kim Kardashian Lindsay Lohan and Yl Yatty joined a handful of celebrities who were targeted for touting cryptos seur this year, the SEC said it acted in several cases where influencers allegedly touted crypto asset securities without disclosing that they were compensated to do so. Kim Kardashian agreed to pay the agency $1.26 million to settle charges for her promotion of Ethereum Max. The SEC said she failed to disclose that she was paid $250,000 to publish a post on her Instagram story. Sec chair, Gary Gensler said in a press release quote, this case is a reminder that when celebrities or influencers endorse investment opportunities including crypto asset securities, it doesn't mean that those investment products are right for all investors and quote. That's a wrap for this special edition of coin desk daily. Get more updates on coindesk.com and we'll see you next time.