The Securities & Trade Fee has charged Kim Kardashian for “touting on social media a crypto asset safety supplied and bought by EthereumMax with out disclosing the fee 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 costs 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 advised HollywoodLife. “Kardashian totally cooperated with the SEC from the very starting and he or she stays prepared to do no matter she will to help the SEC on this matter. She needed 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 transfer ahead together with her many various enterprise pursuits.”
Kim’s publish 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 stated. “We encourage traders to contemplate an funding’s potential dangers and alternatives in gentle 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 fee 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 another crypto safety for 3 years, in keeping with the SEC.