The crypto community reacted with a mix of scepticism and fun after reality star Kim Kardashian was penalized for promoting the cryptocurrency EthereumMax (EMAX).
Some pointed out the regulator’s hypothetical hypocrisy, others told crypto-influencers to lawyer up, whereas a few poked fun at the reality TV star.
The United States Securities and Exchange Commission (SEC) penalized Kardashian $1.26 million on Oct. 3, for “touting on social media” about the EMAX without revealing she was paid $250,000 to post about it.
Kardashian has neither acknowledged nor denied the SEC’s allegations, but settled the charges and agreed to not endorse any cryptocurrency assets until 2025.
SEC chairman Gary Gensler tweeted the fine was a notice that celebrity endorsement of investment opportunities doesn’t “mean those investment products are right for all investors.”
Following Gensler’s tweet, the online crypto community expressed their thoughts on the fine, with some calling out the SEC for its erratic enforcement decisions.
Economist Peter Schiff, known for his anti-Bitcoin (BTC) posture, pointed out what he perceived was an unfair targeting of Kardashian as the SEC hasn’t fined Michael Saylor, MicroStrategy co-founder who has “more to gain pumping crypto,” he believes
Saylor reacted saying Bitcoin isn’t any security but it is a commodity and its promotion would be “similar to promoting steel…or granite” and the coin’s open protocol offers “utilitarian beliefs similar to roads.”
Crypto-personality and author Layah Heilpern believed “the SEC has bigger issues closer to home it should probably focus on…” likely concluding the extensively held belief in the community that certain U.S. politicians have inside traded.
Pseudonymous developer 0xBender distinguished a contrast between the SEC’s heavy-handed treatment of crypto promotions from celebrities, while “have been out here shilling you garbage for 0.2 ETH (Ethereum) a tweet.”
Others such as former federal prosecutor Renato Mariotti said influencers thinking to promote cryptocurrencies should “take note” as the regulator is showing it will “aggressively pursue enforcement actions” and those who promote crypto without considering the laws will “need to find a good lawyer.”
In the interim, Ethereum educator and investor Anthony Sassano told his followers he believes the SEC targeted Kardashian because it creates the illusion the regulator is “doing something” about crypto scams, and suggested it should’ve targeted the creators of EMAX instead.
Still, some saw the lighter side of investing in an unrestrained and highly speculative crypto token, with journalist Tyler Conway saying the star “got the full crypto experience” by losing more money than she’d been 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 promotion returned for her.
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