Kim Kardashian Agrees To Pay $1.26M To The SEC After Being Charged With Illegally Promoting Cryptocurrency
Kim Kardashian assisted the SEC in its investigation after being charged with promoting bitcoin on social media without revealing the compensation she received for doing so.
Kim Kardashian has been accused of “touting on social media a crypto asset security issued and sold by EthereumMax without disclosing the cash she received for the marketing,” according to the Securities & Exchange Commission. Kim is charged with failing to reveal that she received $250,000 in exchange for promoting the digital asset. She and the SEC reached an agreement to resolve the allegations, and she will fork up $1.26 million in fines, disgorgement, and interest. Kim has additionally committed to assisting the SEC in its ongoing inquiry into this matter.
Kim Kardashian’s attorney says, “Ms. Kardashian is glad to have addressed this matter with the SEC.” “Kardashian has always fully cooperated with the SEC, and she is still ready to do anything she can to help the SEC with this situation. She wanted to put this issue behind her to avoid a drawn-out argument. She can do that because of the arrangement she negotiated with the SEC, allowing her to continue with her numerous business endeavors.
A link to the company’s website was given in Kim’s post regarding EthereumMax’s EMAX tokens. The SEC Chairman stated, “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.” The Chairman also emphasised that celebrities are expected to disclose how much they are paid when promoting security assets and that investors should “examine an investment’s possible dangers and prospects in light of their financial holdings.”
Kim’s $1.26 million settlement includes a $1 million fine and $260,000 in disgorgement, equivalent to the sum she received in compensation for the promotion. According to the SEC, she also consented to refrain from endorsing any other cryptocurrency security for three years.
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