‘American TV star’ Kim Kardashian charged by SEC for ‘shilling’ cryptocurrency

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2022-10-07 09:52:44

Recently, the United States Securities and Exchange Commission (SEC) sued Kim Kardashian for illegally promoting the crypto asset Ethereummax.

The supermodel agreed to settle the charges and accept a $1.26 million fine, and said she would cooperate with the SEC’s ongoing investigations.

Kim Kardashian charged by SEC

The origin of the incident dates back to mid-June 2021, when reality TV star Kim Kardashian posted a “shill” article for a token called Ethereummax (EMAX). The Instagram post was marked as “promotional”, and Kardashian said she was “sharing what friends just said about the Ethereum Max token”.

In fact, Kim is not the only celebrity to mention EMAX, as the token is also “promoted” by professional boxers. Floyd Mayweather and former Boston striker Celtics Paul Pierce.

Earlier on October 3, the SEC announced that Kim concealed her payment 228,000 USD to post on an Instagram account that had 228 million followers that day. The US regulator said: “Kardashian’s post contains a link to the Ethereummax website, which will provide detailed instructions for potential investors to purchase EMAX tokens.”

Gary Gensler – SEC Chairman shared:

“This case is a reminder that when celebrities or influencers endorse investment opportunities, including stocks and crypto assets, it does not mean that the investment products It is suitable for all investors. We encourage investors to consider the potential risks and opportunities of an investment against their own financial goals.”

Gurbir S. Grewal, director of the SEC’s Enforcement Division, added, “Under federal securities laws, celebrities or any individual responsible for advertising security tokens must disclose the nature, source, or source. origin and benefits received from the project”.

In order to avoid further destabilizing the case and continuing with his business, Kim did not admit or deny any of the allegations by the regulator, but agreed to pay a hot fine of $1.26 million. The settlement included a $1 million fine and the $250,000 she received from the project plus interest.

Under the pledge, the “super-round three” star will not promote any security tokens for the next three years and agrees to cooperate with the SEC’s ongoing investigation.

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