The Securities & Change Fee has charged Kim Kardashian for “touting on social media a crypto asset safety supplied and bought by EthereumMax with out disclosing the cost she acquired for the promotion.” Kim is accused of failing to reveal that she was paid $250,000 to advertise the cryptocurrency asset. She agreed to settle the fees with the SEC and can pay $1.26 million in penalties, disgorgement and curiosity. Kim has additionally agreed to cooperate with the SEC’s ongoing investigation into this matter.
“Ms. Kardashian is happy to have resolved this matter with the SEC,” a lawyer for Kim instructed HollywoodLife. “Kardashian absolutely cooperated with the SEC from the very starting and he or she stays keen to do no matter she will be able to to help the SEC on this matter. She wished to get this matter behind her to keep away from a protracted dispute. The settlement she reached with the SEC permits her to do this in order that she will be able to transfer ahead together with her many various enterprise pursuits.”
Kim’s submit about EthereumMax’s EMAX tokens included a hyperlink to the model’s web site. “This case is a reminder that, when celebrities or influencers endorse funding alternatives, together with crypto asset securities, it doesn’t imply that these funding merchandise are proper for all traders,” the SEC Chairman mentioned. “We encourage traders to contemplate an funding’s potential dangers and alternatives in mild of their very own monetary belongings.” The Chairman additionally famous that celebrities are required to reveal how a lot they to reveal how a lot they’re paid when selling safety belongings.
Kim’s $1.26 million cost is for a $1 million penalty and $260,000 in disgorgement, equalling the quantity she was paid for the promotion. She has additionally agreed to not promote some other crypto safety for 3 years, in keeping with the SEC.