by The US government announced today that celebrity Kim Kardashian will pay more than $1 million to settle a case involving cryptocurrencies. The Securities and Exchange Commission said in a press release that Kardashian will pay $1.26 million in penalties and other fees for allegations that she used her massive social media influence to promote a cryptocurrency security from EthereumMax without telling her fans that he was paid to promote the.
Kardashian neither admitted nor denied any of the SEC’s allegations and is paying the $1.26 million to settle the case. He also agreed not to promote anything crypto-related for three years.
Today we announced charges against Kim Kardashian for promoting a crypto security offered by EthereumMax without disclosing the payment she received for the promotion.
Kardashian agreed to settle the charges, pay $1.26 million and cooperate with the investigation.— US Securities and Exchange Commission (@SECGov) October 3, 2022
The SEC said Kardashian was paid $250,000 for an Instagram post publicizing EMAX tokens without properly disclosing that she was being paid for it. Kardashian has more than 330 million followers on Instagram, so her reach is really huge.
The SEC’s Gary Gensler said this case should be a reminder to people to do their own research. “This case is a reminder that when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it does not mean that these investment products are suitable for all investors,” Gensler said.
Gensler added: “Mrs. 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 being paid to promote investment in securities.”
Federal securities laws require that anyone promoting a crypto-asset security must disclose the “nature, source and amount of compensation received” for that promotion.
“Investors have a right to know whether the publicity of a security is unbiased, and Ms. Kardashian did not disclose that information,” said SEC Enforcement Chief Gurbir S. Grewal.
Kardashian has her own video game, Kim Kardashian: Hollywood, which is being developed by GluMobile. EA acquired the company for more than $2 billion in 2021 because mobile games are bigger than console and PC titles.
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