- Kim Kardashian is charged by the US SEC for promoting EthereumMax
- Kim consented to the charges and will pay $1.26 million in fines.
- The predicament of Kim Kardashian is to serve as a lesson to other celebrities.
Kim Kardashian has been charged by the Securities and Exchange Commission for promoting a crypto asset security issued and sold by EthereumMax on social media without reporting the compensation she got for the promotion.
In exchange for dropping the accusations, paying $1.26 million in fines, disgorgement, and interest, and cooperating with the Commission’s continuing investigation, Kardashian agreed to settle the case.
According to the SEC’s decision, Kardashian failed to disclose that she received $250,000 from EthereumMax to write a post regarding EMAX tokens on her Instagram account. Kardashian’s tweet included a link to the EthereumMax website, where prospective investors could find instructions on how to buy EMAX coins.
According to SEC Chair Gary Gensler, “this case is a reminder that just because celebrities or influencers recommend investing possibilities, including securities backed by crypto assets, doesn’t guarantee that those investment products are suitable for all investors. We advise investors to take their personal financial objectives into account when evaluating an investment’s possible risks and opportunities.”
According to Gensler, he believes that Kardashian’s situation would serve as a warning to other celebrities about the need of keeping their financial relationships with the public-private.
You can read the SEC’s warning on possibly illegal celebrity-backed crypto asset offers here. Today, SEC Chair Gensler released a video cautioning investors not to rely on their financial choices exclusively on the advice of a celebrity or other influential person.
