Risk, returns & timeframes illustration
1 min read
December 20, 2022
by
Regan Pearson

Investing under the influence? Watch out! ⚠️

Seems popular celebs have the SEC fed up and one well-known reality star has stumped up more than US$1 million in penalties for promoting a crypto token that’s since tanked. Now influencers accused of pump-n-dump activity have roused the ire of the SEC.
1 min read
December 20, 2022
by
Regan Pearson

Investing under the influence? Watch out! ⚠️

Seems popular celebs have the SEC fed up and one well-known reality star has stumped up more than US$1 million in penalties for promoting a crypto token that’s since tanked. Now influencers accused of pump-n-dump activity have roused the ire of the SEC.
1 min read
December 20, 2022
by
Regan Pearson

Investing under the influence? Watch out! ⚠️

Seems popular celebs have the SEC fed up and one well-known reality star has stumped up more than US$1 million in penalties for promoting a crypto token that’s since tanked. Now influencers accused of pump-n-dump activity have roused the ire of the SEC.
Table of contents
Getting Started Investing course
Free Getting Started Course
Take your first, or next, step to becoming a confident investor with Hatch's free online course – just 10 minutes a day, for 10 days.
The Fry up logo with fried egg
Weekly news from Wall St
Subscribe to The Fry Up - your weekly sizzle of headline-grabbing share market news. Read by 60,000 Kiwis to help them take charge of their investing journey.

They might be rich, confident and handsome (we’re looking at you Doug the Pug 🐶❤️), but when it comes to our favourite influencers using their online clout to tout financial products, it’s time to watch out!

The former boom in crypto and NFTs unleashed a wave of famous faces - from Kim Kardashian to YouTuber/boxer/Dink Doink, Logan Paul - promoting often money losing schemes at the expense of everyday investors, and US regulator the Securities and Exchange Commission (SEC) is fed up! 👎

The SEC has been sending a firm message to celebs and influencers who are charging big bucks to shill practically worthless crypto products. How firm? Kim Kardashian settled with the SEC for more than US$1 million for failing to mention how much she had been paid to promote the crypto token EthereumMax (now worth US$$0.00000000067). 💰 And it might be too late to say sorry for Bored Apes Justin Bieber, Madonna and Paris Hilton. The A-listers are being sued by investors for similarly failing to disclose they were being paid to promote sales. 🦍 

The SEC is also cracking down on share market charlatans. Last week they charged eight people involved in an alleged online pump-and-dump scheme. The group allegedly whipped up hype for certain shares amongst their followers across social media by using false and misleading information. Then, as the price of shares jumped, the group is said to have dumped their shares onto eager buyers before the price fell. The scheme reportedly made more than US$100 million in illegal gains. 🤑

But here's the thing: just because someone has a lot of followers and seems successful, doesn't necessarily mean they're qualified to give advice. It's always important for every potential investor to do your own thorough research before making decisions based on advice from anyone, even well-known public figures. And if Doug the Pug starts an NFT project, it’s probably best to just keep scrolling. 🍷

Regan Pearson
Finance writer
Linkedin

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

Join the Kiwis who are hatching their tomorrow and have invested more than $1 billion with Hatch.

Explore another series
Tax
Money
Economy
Investing

More recent news articles

Recent learn articles

7 min read
May 7, 2024

Street-fighter mode: McDonald’s supersizing burgers to win back frugal customers

McDonald’s CEO Chris Kempczinski says they’re feeling the loss of low earning customers during the high cost of living, promising to bring back value dining, as well as creating their biggest burger ever. But one financial analyst has dug into the data, and he tells a different story.
Read more
7 min read
Apr 16, 2024

Geopolitical pressures wobble big bank’s outlook

Big banks have kicked off quarterly earnings season in the US markets, but JPMorgan CEO Jamie Dimon’s sobering shareholder letter sent the bank stocks tumbling sector-wide last week. But there is still investor optimism in the global financial powerhouses, with stock soars in the past six months that even rival some Big Tech.
Read more
8 min read
Apr 9, 2024

Disney survived a hostile takeover, what have we learned?

Disney beat Nelson Peltz in his battle for boardroom control, ending years of struggles that kicked off during Covid. Retired CEO Bob Iger returned to bring the legacy entertainer back from big losses, but he can’t stay forever. So what happened behind closed doors during the failed hostile takeover?
Read more

Related news articles

More recent learn articles

No items found.

Recent news articles

More recent learn articles

7 min read
May 7, 2024

Street-fighter mode: McDonald’s supersizing burgers to win back frugal customers

McDonald’s CEO Chris Kempczinski says they’re feeling the loss of low earning customers during the high cost of living, promising to bring back value dining, as well as creating their biggest burger ever. But one financial analyst has dug into the data, and he tells a different story.
Read more
7 min read
Apr 16, 2024

Geopolitical pressures wobble big bank’s outlook

Big banks have kicked off quarterly earnings season in the US markets, but JPMorgan CEO Jamie Dimon’s sobering shareholder letter sent the bank stocks tumbling sector-wide last week. But there is still investor optimism in the global financial powerhouses, with stock soars in the past six months that even rival some Big Tech.
Read more
8 min read
Apr 9, 2024

Disney survived a hostile takeover, what have we learned?

Disney beat Nelson Peltz in his battle for boardroom control, ending years of struggles that kicked off during Covid. Retired CEO Bob Iger returned to bring the legacy entertainer back from big losses, but he can’t stay forever. So what happened behind closed doors during the failed hostile takeover?
Read more