Kim Kardashian was fined $1.26 million for promoting an illegal crypto investment scheme on Instagram – SEC
The US Securities and Exchange Commission (SEC) announced on Monday that Kim Kardashian, model, and TV personality has paid a $1.26 million penalty after being accused of improperly advertising an illegal cryptocurrency investment opportunity via her Instagram handle. Kardashian also consented to refrain from endorsing any cryptocurrency-related investments for three years.
Kim Kardashian’s Non-Disclosure Statements
Kim Kardashian did not disclose the cash she earned for promoting a cryptocurrency asset that EthereumMax heavily marketed on social networking sites. According to the SEC, she consented to resolve the allegations, pay $1.26 million in fines, forfeiture, and interests, and assist the Authority’s ongoing inquiry.
This incident serves as a warning that just because a celebrity or other influential person supports a certain investment opportunity, such as cryptocurrency securities, will not indicate that all investors should buy those goods. Gary Gensler, the SEC chair, made this statement.
They advise investors to weigh an investment’s possible opportunities and risks against their financial objectives, according to a statement from Gensler.
Kim Kardashian posted a series of questions to her followers on her Instagram post “Do you guys like cryptocurrency? Communicating what my friends have just informed me well about Ethereum Max Token is not investment advice.” At that point, she urged her supporters to visit the Ethereum Max website as well as “join the E-Max family.”
What amount she received for the Promotion
According to the SEC, Kim Kardashian did not reveal that she received $250,000 in exchange for posting on her Instagram regarding EMAX tokens, a cryptocurrency asset protection that Ethereum Max is promoting. Kardashian’s post included a reference to the EthereumMax webpage, where prospective investors could find directions on how to buy EMAX tokens.
As per the national securities regulations, any famous person or another person who promotes cryptocurrency asset security is required to report the type, source, and sum of payment they obtained in exchange for both promotions, according to Gurbir S. Investors have a right to know if a security’s PR is objective, but Kardashian refused to mention this knowledge, according to Grewal.
