The SEC, renowned for tracking down the slightest irregularities in the crypto world, recently indicted showbiz star Kim Kardashian. This for promoting a cryptocurrency without his permission. Below are the details of the case.
Reality TV star charged after fraudulent Crypto posting
Kim Kardashian known for her influence on a global scale. And neither more nor less in the showbiz world has been indicted by the SEC for promoting the cryptocurrency EthereumMax (EMAX) without its official approval. However, it would have published information concerning the asset without indicating the remuneration received in return for this service. By an order issued by the SEC, the star would have received the tidy sum of $ 250,000 to support EMAX tokens on his platform. So she had published the information about EthereumMax without revealing the amount.
Moreover, Kim Kardashian’s post contains a link to the crypto website. On this site, instructions are given to easily allow the public to invest in EMAX tokens. According to the SEC, the reality TV star has neither refuted nor endorsed the charge against her. Thus, Kim Kardashian even admits to having recognized her mistake. She also promised not to solicit cryptocurrencies on her networks for at least 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
Kim Kardashian Agrees to Pay Fine Following SEC Conviction
The American star agreed to pay the indicated fine amounting to the sum of 1.26 million dollars. An amount split into two distinct parts: 260,000 dollars for disgorgement. And interest paid before judgment, and a $1 million penalty for breaking the law.
SEC Chairman Gary Gensler issued an advisory on the case insisting that celebrities and others need to be “remind that they are required by law to disclose to the public when and how much they are paid to promote. investment in securities. He also added “we encourage investments to consider the potential risks and opportunities of an investment in light of their own financial objectives. It is brought to the attention of readers that the investigation is currently taking its course.