- US Securities and Exchange Commission (SEC) announced charges against Kim Kardashian for touting EthereumMax on social media.
- Kardashian agreed to settle the charges and pay $1.26 million in penalties, disgorgement and interest in the ongoing investigation.
- Kim received $250,000 for promoting EthereumMax on Instagram , touting EMAX tokens and sharing a link to the website.
US regulator the Securities and Exchange Commission (SEC) brought charges against Kim Kardashian for touting EthereumMax through her Instagram account. Kardashian failed to disclose that she received $250,000 for promoting EMAX tokens and the regulator has slammed the celebrity for sharing instructions on how to purchase the asset through her Instagram account.
Also read: How eight state regulators orchestrated crypto lender Nexo’s takedown and why it matters
SEC announces charges against Kim Kardashian for promoting EthereumMax
Kim Kardashian, a reality TV star and influencer, has paid $1.26 million to the US Securities and Exchange Commission (SEC) to settle charges brought against her for promotion of cryptocurrency EthereumMax.
In the summer of 2021, three celebrities Kim Kardashian, Floyd Mayweather and former NBA star Paul Pierce were hit by a lawsuit from an aggrieved EMAX investor. The lawsuit alleged that the three celebrities colluded with EMAX co-founders Steve Gentile and Giovanni Perone to pump the price of EMAX before subsequently orchestrating a dump. This resulted in massive losses for EMAX holders. This lawsuit was the beginning of legal trouble for the reality TV star.
The SEC filed charges against the influencer for failing to disclose the amount she received for posting the promotional content on her Instagram account. In addition to payment of settlement charges, Kardashian has agreed to refrain from promoting cryptocurrencies for three years. By bringing charges against the influencer, the SEC has set an example for all influencers to disclose details of payment received in exchange for promotion of crypto asset securities.
Kardashian posted a link to the EthereumMax website on her Instagram handle with 331 million followers, and this contained step by step instructions for investors to purchase EMAX tokens. The reality TV star failed to disclose that she received $250,000 for promoting the tokens.
Gary Gensler, SEC chair was quoted as saying:
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. We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.
Gensler explained that Kim Kardashian’s case is a reminder for celebrities and influencers that the law requires them to disclose to the public when and how much they are paid to promote an investment in a security.
Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.
— Gary Gensler (@GaryGensler) October 3, 2022
This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.