SEC’s (Securities Exchange and Commission) Monday statement disclosed that reality TV personality Kim Kardashian faced charges for improperly advertising crypto security to her more than 300 million Instagram followers.
The agency confirmed that Kardashian settled the allegations without denying or acknowledging wrongdoing. The celebrity agreed to pay fines worth $1.26 million. The Securities & Exchange Commission stated that Kardashian ignored to confirm receiving $250K to support EthereumMax coins in a June 2021 Instagram post.
She had to pay that amount plus interest and another $1M fine. Kardashian posted a link that directed followers to the EtereumMax official site to access information about buying EMAX tokens.
SEC’s Gary Gensler stated that Kardashian’s case confirms that influencers or celebrities endorsing investment opportunities such as crypto securities do not mean the investment products are ideal for all market players.
Gensler pointed out that the case reminds individuals that the law wants them to publicize their pay when promoting securities investment.
Celebrities Violating Crypto Ads Laws
Moreover, Kardashian joins the list of celebrities that faced the law that requires disclosure of individuals paid to advertise financial products. Actor Steven Segal paid $300,000 in 2020 for a similar SEC settlement. And the regulator banned Segal from publicizing investment products for three years.
In 2018, the Securities and Exchange Commission charged the renowned boxer Floyd Mayweather and producer Dj Khaled, citing failure to reveal payments received for promoting digital currency investment.
Many athletes and celebrities usually advertise cryptocurrency via ads on television and online, using approaches that don’t violate the law. Gwyneth Paltrow, Reese Witherspoon, Tom Brady, and Matt Damon are among the individuals that utilized their prominence to spread crypto enthusiasm.
The securities regulator confirmed that Kardashian had agreed to cooperate with the ongoing probe. Nevertheless, they didn’t clarify the investigation.
Kardashian Starts Private Equity Company
Kim Kardashian launched a private equity firm last month, focusing on investing in media and consumer industries. Michael Rhodes, her attorney, confirmed that the TV personality cooperated with the SEC and enjoyed how the case ended.
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