What punishments have US regulators given influencers who hid paid crypto promotions?
Research question: Which FTC or state attorney-general actions have targeted crypto endorsers or giveaway promoters for undisclosed token or NFT compensation, and what remedies did they impose?
The only state attorney-general action in the facts is New York's case against NovaTech/AWS Mining promoters, which secured permanent bans from the securities, commodities, and cryptocurrency industries for four top promoters, who must also pay disgorgement to victims 6. The facts describe those promoters as falsely claiming NovaTech was a registered hedge fund broker and advertising 2 to 4 percent weekly profits, but they do not say the promoters received undisclosed token or NFT pay 7. The FTC's 2017 settlement with two YouTube personalities involved an undisclosed ownership stake in a video game item lottery, not crypto tokens or NFTs 1. The SEC's Kardashian order, which involved undisclosed EthereumMax payments and imposed disgorgement and a civil penalty, is a federal securities action rather than an FTC or state AG action 5. The newest fact is dated October 22, 2026, so it is within days of today's date 6. The facts do not name an agency or remedy for the Frosties NFT rug pull, which they describe only as investor fraud charges 4.
Sources
"In the action, the FTC alleged two YouTube personalities engaged in deceptive practices for failing to disclose material connections—in this case, ownership—with a video game item “lottery” company that they were promoting."Individual Influencers Settle with the FTC over Undisclosed Endorsements
"Civil penalties for FTC violations run between $51,744 and $53,088 per violation as of 2025, per the agency's inflation-adjusted civil penalty amounts . Not per campaign. Per violation."2026 FTC Influencer Disclosure Rules
"in April 2017, the agency sent 90 “educational” letters to entities who potentially failed to comply with the Endorsement Guides, roughly half of whom were individual influencers."Individual Influencers Settle with the FTC over Undisclosed Endorsements
"D. Chris, “Frosties NFT Creators Charged With ‘Rug Pull’ Investor Fraud,” 2022."Studi Prospektif Metaverse dan NFT bagi Pengguna NFT, Komunitas Game dan Trader Crypto Currency (2023)
"The Kardashian order found she was paid approximately $250,000 to promote EthereumMax without disclosing that payment, resulting in disgorgement, prejudgment interest, and a civil penalty."U.S. Crypto Influencer Promotions: FTC Disclosures, SEC Penalties
"four of the scheme’s top promoters – Martin Zizi, Frantz Ciceron, Ricardo Roy, Sr., and James Corbett – will pay millions in disgorgement for the benefit of victims, and have been permanently banned from participating in the securities, commodities, and cryptocurrency industries."Attorney General James Secures Nearly $6 Million From Crypto Scammers ...
"The Petions falsely marketed NovaTech as a registered hedge fund broker, misrepresented that NovaTech was licensed to trade cryptocurrency in the U.S., advertised high profits from trading of approximately two to four percent per week, promoted recruitment bonuses, and promised that investors could withdraw their funds and profits at any time."Attorney General James Secures Nearly $6 Million From Crypto Scammers ...
"In June 2024, Attorney General James sued cryptocurrency trading company NovaTechFx (NovaTech) and cryptocurrency mining company AWS Mining Pty Ltd. (AWS Mining) for targeting immigrant communities, particularly Haitian New Yorkers, in prayer groups and through social media and WhatsApp group chats"Attorney General James Secures Nearly $6 Million From Crypto Scammers ...