The Securities and Exchange Commission (SECthe American CVM) announced, this Monday (3), accusations against Kim Kardashian for allegedly promoting what the regulator called “a security of crypto asset”.
The crypto asset in question is EthereumMax (EMAX), promoted by the celebrity and influencer in 2021, according to Decrypt.
THE SEC stated that Kardashian did not report the payment received for the EMAX token promotion. The celebrity has agreed to pay $1.26 million in fines and will work with the SEC following the investigation.
“This case is a reminder that when celebrities or influencers reinforce investment opportunities, including cryptocurrency securities, it does not mean that these investment products are suitable for all investors.” SECGary Gensler, on Twitter.
Kim Kardashian it serves as a reminder to celebrities and others that they must report how much they are paid to promote investments in securities, as required by law, Gensler added.
The celebrity and influencer did not report receiving $250,000 for posting on her Instagram account about the EMAX token, offered by EthereumMax. The publication included a link to the website of EthereumMaxwith instructions on how to acquire the token.
Under US federal law, celebrities or individuals promoting a “crypto-asset security” must report the nature and value received in exchange for the promotion, said the director of oversight of the Crypto asset. SECGurbir S. Grewal.
“Investors have a right to know that the advertising of a security is not biased, and Ms. Kardashian did not disclose this information,” Grewal concluded.
Kim Kardashian neither admitted nor denied any of the regulator’s findings, and agreed to pay $1.26 million. The fine includes approximately $260,000 in reimbursement – representing the payment received for advertising and pre-trial interest – as well as a $1 million fine.
The celebrity also agreed not to promote any “crypto-asset securities” for three years.
The investigation of SEC about EthereumMax to be continued.
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Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
