U.S. Securities and Exchange Commission brought charges against Kim Kardashian and other celebrities for unlawfully advocating the cryptocurrency asset Ethereummax. The U.S. regulator detailed that Kardashian agreed to settle the charges and pay $1.26 million in penalties, and plans to cooperate with the SEC’s ongoing investigation.
SEC charges Kardashian. Celebrity agrees to pay $1.26M in penalties and will not tout any crypto assets for three years
Bitcoin.com News covered Kim Kardashian’s reality show and her ethereummax (EMAX) token. At the time, she shared an Instagram post that was marked as an “#AD,” and Kardashian said she was “sharing what my friends just told me about the Ethereum Max token.” Kardashian wasn’t the only celebrity that shilled EMAX, as the token was also promoted by the professional boxer Floyd Mayweather and former Boston Celtics forward Paul Pierce.
SEC announced on October 3, that Kardashian had failed to reveal that she received $250,000 in compensation to post the Instagram message to her 228,000,000 followers. “Kardashian’s post contained a link to the Ethereummax website, which provided instructions for potential investors to purchase EMAX tokens,” the U.S. regulator detailed on Monday. SEC chair Gary Gensler put out a statement concerning Kardashian’s charges and he appeared in an animated videoMore information about this affair.
“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,” Gensler remarked during the SEC announcement. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.” Gensler added:
Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.
The SEC ordered states that Kardashian and her socialite allegedly violated anti-touting legislations. Kardashian accepted to pay $1.26million, which included approximately $260,000 in penalties. Kardashian promised that she would not sell any crypto-related securities for the next three year. Kardashian has had a rough month, as she’s been dealing with the controversy surrounding the sex tape that was released featuring herself and the popular singer and actor, Ray J.
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