Shutterstock
SEC fines Kim Kardashian $1.2M over crypto, Credit Suisse hits record low, five red flags of global recession, NFT sales down 60% from Q2, and more financial news.
The Securities and Exchange Commission on Monday fined reality TV star and brand influencer Kim Kardashian $1.26 million. The fine stems from civil charges over a post she made promoting a crypto asset security sold by EthereumMax without disclosing she was paid for the promotion, NPR reported
The SEC alleged Kardashian failed to disclose she received $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax, ABC reported.
The $1.26 million settlement equals the payment Kardashian received for the promotion as well as a $1 million penalty, the SEC said.
“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,” said SEC Chair Gary Gensler in a statement. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
Credit Suisse fell to a record low on Monday, with stock in the Swiss bank down more than 8% to about $3.68 a share, marking a nearly 60% drop so far this year, CNN reported. Investor concerns mount as a series of regulatory failings and scandals have cost the company billions.
There are five red flags that a global recession is on the horizon, according to the experts at research firm Ned Davis. The firm has found a similarly high probability rating only twice in its history – in 2008 and 2020, CNN reports. Here are the five signs the company sees as portents of recession:
1. The US dollar outsizing other currencies and the rising interest rates from the US central bank. Weaker currencies in other nations make it more expensive for those nations to import essential items such as food and fuel.
2. America’s slowing economy. The #1 driver of America’s economy is shopping, and with wages not keeping up with inflation, consumers have pulled back.
3. Corporate belt-tightening. FedEx’s outlook on the global economy–and announcing its earnings were likely to plunge over 40%–was seen as a bellwether, as was a plunge in Apple’s stock.
4. The market in bear territory. The S&P 500 is down nearly 24% for the year, and all three major US indexes are in bear markets and down at least 20% from their most recent highs.
5. Runaway prices, war, radical financial policies in various nations.
The highly speculative digital assets known as non-fungible tokens, or NFTs, have seen sales drop sharply in the third quarter, down 60% from Q2. NFTs are blockchain-based digital files that exploded in popularity in 2021, driven largely by crypto-rich speculators. The third quarter saw NFT sales at $3.4 billion, down from $8.4 billion the previous quarter and $12.5 billion at the market’s peak in the first quarter of the year, according to DappRadar, US News reported.
