Fundrise

Fundrise Advisors LLC was charged by the U.S. Securities and Exchange Commission in August 2023 for paying over 200 social media influencers and newsletter publishers a total exceeding $8 million to solicit investors, while failing to provide investors with mandatory disclosures required under the Investment Advisers Act's cash solicitation rules. Fundrise settled without admitting wrongdoing, paying a $250,000 civil penalty and accepting a cease-and-desist order.

━━━ DOCUMENTED INCIDENTS ━━━

▸ Case #1 — SEC Charges for Undisclosed Paid Influencer Solicitation (2023) From February 2016 through December 2021, Fundrise paid over 200 influencers and newsletter publishers without requiring them to provide clients with Fundrise's Form ADV brochure or a separate written disclosure describing the compensation arrangement — both legally required under SEC Rule 206(4)-3. The SEC's order (IA-6381) found this constituted a violation of the Investment Advisers Act. Fundrise agreed to a $250,000 civil penalty, a censure, and a cease-and-desist order in August 2023. This is a landmark case documenting how fintech platforms weaponized creator audiences without proper regulatory disclosure.