Kim Kardashian To Pay $1.26 Million To Settle S.E.C. Charges Over Crypto Promotion
Kim Kardashian won’t be allowed to promote crypto for three years.
According to reports, Kim Kardashian was charged by the Securities and Exchange Commission for promoting a crypto security asset called EthereumMax via Instagram without disclosing she was paid $250,000 to do so. Kim Kardashian’s Instagram post included a link to the EthereumMax website, which gave instructions for potential investors to buy EMAX tokens. The reality star agreed to a settlement by coughing up $1.26 million plus $260,000, which is what she was paid plus interest. The 41-year-old has also decided to cooperate with the SEC’s ongoing investigation and agreed to not promote crypto asset securities for three years.
On Monday (Oct. 3) SEC Chair Gary Gensler stated:
“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.”
Gary Gensler continued:
“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
Gary 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.”
Director of the SEC’s Division of Enforcement, Gurbir S. Grewal said:
“The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion.”
Gurbir S. Grewal added:
“Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”
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