Reality TV star Kim Kardashian paid $1.26 million fine after she was charged with unlawfully promoting an illegal crypto investment scheme on Instagram, the US Securities and Exchange Commission (SEC) said on Monday.
Kim has also agreed to not promote any crypto asset securities for three years. She promoted on social media a crypto asset offered and sold by EthereumMax without disclosing the payment she received for the promotion.
The SEC said that she agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission\u2019s ongoing investigation. \u201cThis case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn\u2019t mean that those investment products are right for all investors,\u201d said SEC Chair Gary Gensler.
\u201cWe encourage investors to consider an investment\u2019s potential risks and opportunities in light of their own financial goals,\u201d Gensler said in a statement. In a series of posts to her Instagram story, Kardashian asked her followers, \u201cAre you guys into crypto??? This is not financial advice but sharing what my friends just told me about the ethereum max token!\u201d Her followers were then encouraged to head to the EthereumMax website and \u201cjoin the E-Max community\u201d.
The SEC found that Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax. Kardashian\u2019s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.
\u201cThe 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,\u201d said Gurbir S. Grewal, Director of the SEC\u2019s Division of Enforcement.
\u201cInvestors are entitled to know whether the publicity of a security is unbiased, and Kardashian failed to disclose this information,\u201d Grewal said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Reality TV star Kim Kardashian paid $1.26 million fine after she was charged with unlawfully promoting an illegal crypto investment scheme on Instagram, the US Securities and Exchange Commission (SEC) said on Monday.Kim has also agreed to not promote any crypto asset securities for three years. She promoted on social media a crypto asset offered […]<\/p>\n","protected":false},"author":4,"featured_media":300853,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[688],"tags":[],"class_list":["post-300815","post","type-post","status-publish","format-standard","has-post-thumbnail","category-infotainment"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/300815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=300815"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/300815\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media\/300853"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=300815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=300815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=300815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}