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Kim Kardashian has made it to the headlines today and it’s not because of drama in her personal life or her fashionable statements. The reality star and businesswoman has made it to the news as she’s been fined by the US Securities and Exchange Commission (SEC) for $1.26 million for unlawfully promoting an illegal crypto investment scheme on Instagram.
Kim recently promoted a crypto asset offered and sold by EthereumMax without disclosing the payment she received for the promotion. This has resulted in the reality star having to pay a hefty fine including the full amount she received for the posting and a penalty. Read on to know how much she paid the SEC and the details for the fine.
Noting the reason for Kim Kardashian to be slapped with the fine, Just Jared reported SEC’s commission saying on Monday, “Kardashian failed to disclose that she was paid $250,000 (around Rs 2.04 crore) to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax.”
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The commission further added, “Kim Kardashian violated the anti-touting provision of the federal securities laws. Without admitting or denying the SEC’s findings, Kardashian agreed to pay the aforementioned $1.26 million (approx. Rs 10.27 crore), including approximately $260,000 (around Rs 2.12 crore) in disgorgement, which represents her promotional payment, plus prejudgment interest, and a $1,000,000 (around Rs 8.15 crore) penalty. Kardashian also agreed to not promote any crypto asset securities for three years.”
Continuing further, SEC chair Gary Gensler said in a statement, “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.” He added, “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals. Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.”
For those wondering what Kim Kardashian posted, recently in a series of posts on her Instagram story, the mother of four asked her followers, “Are you guys into crypto??? This is not financial advice but sharing what my friends just told me about the ethereum max token!” Her followers were then encouraged to head to the EthereumMax website and “join the E-Max community”.
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