VanEck has been fined $1.75 million by the U.S. SEC for violating marketing regulations in its ETF operations.

According to BlockBeats news on February 18th, asset management group VanEck will pay a $1.75 million fine to settle charges from the U.S. Securities and Exchange Commission (SEC) related to its social media-focused ETF launched in 2021, as reported by Cointelegraph. The SEC imposed civil penalties on the company. In a statement on February 16th, the SEC revealed that when VanEck launched the social sentiment ETF in March 2021, it did not fully disclose the involvement of a well-known social media personality in promoting the product. The ETF aims to track an index using "positive insights" from social media and other data sources. However, the SEC found that VanEck collaborated with an influential online figure to enhance the fund's appeal through social media in order to increase its success rate.