VanEck Fined $1.75 Million
VanEck Associates Corporation has agreed to pay a $1.75 million fine to resolve a dispute with the U.S. Securities and Exchange Commission (SEC) regarding the launch of the VanEck Social Sentiment ETF, which the company introduced to the market in 2021.
The SEC’s Defense Was VanEck’s Avoidance of Clear Disclosures
The SEC stated that VanEck failed to fully disclose the involvement of a prominent social media figure who played a significant role in marketing the ETF. It was announced that investors lacked crucial information and that this constituted a violation of transparency rules.
It was found that VanEck collaborated with an influential and controversial online personality to increase the popularity of the fund. This collaboration and the failure to disclose relevant details led to issues.
It is believed that the relevant social media personality is David Portnoy, the founder of Barstool Sports, although the SEC did not explicitly specify this individual.
