SEC Charges Socialite Kim Kardashian for Unlawfully Touting Ethereummax – Regulation Bitcoin News

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 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 Charges Socialite Kim Kardashian for Unlawfully Touting Ethereummax
Kim Kardashian, reality television star and host of Reality TV series, promoted ethereummax to her Instagram followers (post pictured right). The U.S. SEC’s Division of Enforcement director Gurbir S. Grewal said: “Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”

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.

In this story, tags
$1.26 Million, Ad, advertisement, Anti-touting Laws, Boston Celtics. Celebrities. Celebrities. Celebs. Crypto. Crypto assets. Emax. ERC20. ERC20 project. Emax. Gurbir S. Grewal. Instagram Post, Kim Kardashian. Newsweek. Paul Pierce. SEC. Sec chair. Shilling Ethereum Max. Touting.

Do you have any thoughts on Kardashian being charged with promoting ethereummax? Comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for News. He also lives in Florida and works as a journalist covering financial technology. Redman is an active participant in the cryptocurrency community from 2011. Since 2011, Redman has been an active member of the cryptocurrency community. Redman has contributed more than 6000 articles to News since September 2015. These articles are about disruptive protocols that are emerging.

Credits for the imageShutterstock. Pixabay. Wiki Commons

DisclaimerThis article serves informational purposes. This is not an invitation to purchase or sell directly, nor a suggestion or endorsement of products, services or companies. is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.

Get more Crypto News at CFX Magazine