Kim Kardashian will be subject to a hefty punishment for supporting cryptocurrency
New York City: The reality TV personality and entrepreneur has agreed to assist with the SEC’s continuing investigation, according to a statement released by the commission today. He also agreed to pay a total of $1.26 million in fines, disgorgement, and interest.
Kim Kardashian has reached a settlement with the United States Securities and Exchange Commission (SEC), under which she will pay a fine of $1.26 million and admit guilt for illegally promoting a cryptocurrency on social media ( Instagram ) without disclosing the payment she received for the plug. The case was brought about by the SEC.
According to a statement released by the Securities and Exchange Commission (SEC) on Monday, a reality TV celebrity and entrepreneur has agreed to comply with the SEC throughout its continuing investigation and will pay a total of $1.26 million in fines, disgorgement, and interest.
It was also said that Kardashian had neglected to disclose that she had been paid the sum of $250,000 to publish the post promoting EMAX tokens, the crypto asset security that was being sold by EthereumMax on her Instagram account. EMAX tokens were being offered by EthereumMax.
Her article included a link to the EthereumMax website, which detailed the steps that would be necessary for interested parties to do in order to acquire EMAX coins.
Gary Gensler, the chair of the Securities and Exchange Commission, said that “this case is a reminder that, when celebrities or influencers support investing possibilities, including crypto asset securities, it does not indicate that such investment products are suited for all investors.”
Boxer Floyd Mayweather Jr. and a music producer known as “DJ Khaled” were both prosecuted by the US regulator in November 2018 for allegedly not declaring money they received for encouraging investments in initial coin offerings (ICOs).
Mayweather and Khaled Mohamed Khaled did not acknowledge or deny the SEC’s allegations, but they did agree to pay a total of $767,500 in fines and penalties.
Kardashian has consented to a three-year silence during which she will not promote any crypto asset stocks.
In addition to her fame as a star of reality television shows like “Keeping Up with the Kardashians,” which airs on Hulu, Kardashian is also a very successful entrepreneur. Her brands include SKIMS, which offers shapewear, loungewear, and a variety of other goods, and SKKN, which is a skincare line.