Kim Kardashian to pay $1.26M to settle SEC crypto charges
Also: SEC Charges Kim Kardashian for Unlawfully Touting Crypto Security (Securities and Exchange Commission)
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Source: Politico
Kim Kardashian to pay $1.26M to settle SEC crypto charges
The SEC alleged that the celebrity billionaire used her Instagram account to tout EthereumMax’s token, EMAX, without adding any disclaimer that she was being given $250,000 to publish the posts.
By DECLAN HARTY and SAM SUTTON
10/03/2022 09:00 AM EDT
Kim Kardashian will pay $1.26 million to settle federal charges that she promoted a cryptocurrency without disclosing she was paid to do so, the Securities and Exchange Commission said Monday.
The SEC alleged that the celebrity billionaire and reality TV star used her Instagram account — followed by 331 million people — to tout EthereumMax’s token, EMAX, without disclosing that she was being given $250,000 in exchange. EMAX is a token built on the popular Ethereum blockchain. Its value has fallen by more than 99 percent since peaking in May 2021.
“Are you guys into crypto????” Kardashian wrote in a June 2021 post, according to the SEC’s order. “This is not financial advice but sharing what my friends just told me about the Ethereum Max token!”
Kardashian provided links to where potential investors could learn how to buy the digital currency. And while Kardashian did include “#AD” on the bottom of the post, the SEC said Kardashian should have disclosed that she had received compensation as well as the amount paid.
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Read more: https://www.politico.com/news/2022/10/03/kim-kardashian-to-pay-1-26m-to-settle-sec-crypto-charges-00059985
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Source: Securities and Exchange Commission
SEC Charges Kim Kardashian for Unlawfully Touting Crypto Security
FOR IMMEDIATE RELEASE
2022-183
Washington D.C., Oct. 3, 2022 — The Securities and Exchange Commission today announced charges against Kim Kardashian for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion. Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.
The SEC’s order finds that Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax. Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.
"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," said SEC Chair Gary Gensler. "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," Chair Gensler added.
"The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion," said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. "Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information."
The SEC’s order finds that Kardashian violated the anti-touting provision of the federal securities laws. ...
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Read more: https://www.sec.gov/news/press-release/2022-183
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