Feds Take Aim at Social Media Statements

Since Musk’s settlement with the SEC in 2018, the agency has brought multiple claims against high-profile figures

WHO Floyd Mayweather Jr. and DJ Khaled

WHEN November 2018

WHAT The boxer and music producer each settled charges stemming from touting initial coin offerings (ICO) on social media without disclosing that they were paid six figures for the posts. Mayweather agreed to pay more than $600,000 and not promote any securities for three years, and Khaled agreed to pay more than $150,000 and not promote them for two years.

WHO Clifford Harris Jr., aka T.I.

WHEN September 2020

WHAT The Atlanta-based rapper agreed to pay $75,000 in relation to social media posts promoting a fraudulent ICO for a company called FLiK and agreed not to participate in offerings or sales of digital-asset securities for five years.

WHO Mark Melnick

WHEN October 2021

WHAT The webcaster agreed to a deal to resolve charges that he manipulated the market by spreading more than

100 false rumors about public companies on his stock trading webcast. This includes returning about $375,000 in profits and being barred from the securities industry and the trading of penny stocks.

WHO Kim Kardashian

WHEN October 2022

WHAT Kardashian made a deal with the SEC to resolve its claim that she touted EMAX tokens, a crypto asset sold by EthereumMax, without disclosing that she was paid $250,000 for the Instagram post. She agreed to pay $1.26 million — which represented return of her payment, plus interest, and a $1 million penalty.

WHO Financial influencers

WHEN December 2022

WHAT The SEC charged eight men in connection with a $100 million “pump and dump” scheme for misleading their followers on Twitter and Discord to manipulate stock prices.