will pay $1.26 million to settle fees from the Securities and Exchange Commission for an ad she placed on . The socialite and reality TV megastar was paid $250,000 to post about EthereumMax’s EMAX tokens, but did not disclose that she was paid to do so.
The SEC determined that Kardashian violated the anti-touting provision of the federal securities laws. She neither admitted nor denied the charges, but agreed to pay a $1 million penalty and about $260,000 in confiscation, which the SEC says covers the fee she received for the allegation, plus prejudice interest. Additionally, Kardashian vowed not to promote cryptocurrency assets for three years.
“This case is a reminder that when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it doesn’t mean those investment products are suitable for all investors,” said SEC Chairman Gary Gensler. “We encourage investors to consider the potential risks and rewards of investing in light of their own financial goals.”
Earlier this year for promoting EthereumMax tokens. It accused the defendants of participating in a pump-and-dump scheme, in which investors advertise an asset and sell their stake in it after the value increases. The lawsuit claimed the token’s value increased by 632 percent after Mayweather and former NBA player Paul Pierce (another defendant in the case) promoted it.
According to a survey, 19 percent of people who heard about a Kardashian Instagram story that mentioned the cryptocurrency invested in EthereumMax. The lawsuit alleges that the token’s value plummeted 98 percent the day after Kardashian’s post.
This is far from the first time Kardashian has been accused of making sponsored posts without disclosing that they were advertisements. Federal Trade Commission guidelines suggest that those paid to endorse something on social media should use the #ad hashtag or terms like “Sponsored,” “Promotion,” or “Paid Ad.”
In an incredible stroke of luck, a new podcast narrated by Kardashian, who is studying to be a lawyer, . The System: The Case of Kevin Keith is a true crime podcast.
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https://www.engadget.com/kim-kardashian-sec-charges-crypto-instagram-stories-142300194.html?src=rss Kim Kardashian will pay $1.26 million to settle SEC charges over a crypto post