The United States Securities and Exchange Commission fined Kim Kardashian $1.2 million on Monday for illegally promoting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.
Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, a crypto asset security offered by EthereumMax, according to a statement by the U.S. SEC.
“The Securities and Exchange Commission today announced charges against Kim Kardashian for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion,” a statement by the SEC read.
The Exchange Commission further detailed that “Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.”
Speaking on the development, the U.S. SEC chairman Gary Gensler warned that celebrity endorsements of investment opportunities don’t translate to mean that the investment is right.
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” Mr Gensler said.
“Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities,” Gensler added.
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