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On Monday, the US Securities and Exchange Commission (SEC) filed charges against celebrity and socialite Kim Kardashian for illegally promoting the crypto asset Ethereummax. The US regulator detailed that Kardashian agreed to settle the charges and pay $1.26 million in fines, and plans to cooperate with the SEC’s ongoing investigation.
In mid-June 2021, Bitcoin.com News reported on reality TV series star Kim Kardashian and how she obtained a token called ethereummax (EMAX). At the time, she shared an Instagram post that was tagged as a “#AD,” and Kardashian said she was “sharing what my friends just told me about the Ethereum Max token.” Kardashian wasn’t the only celebrity to hit EMAX, as the token was also promoted by professional boxer Floyd Mayweather and former Boston Celtics forward Paul Pierce.
The Oct. 3 SEC filing says Kardashian failed to disclose that she was paid $250,000 to publish the Instagram post to her 228 million followers that day. “Kardashian’s post contained a link to the Ethereummax website, which provided instructions for potential investors to purchase EMAX tokens,” the US regulator said on Monday. SEC Chairman Gary Gensler released a statement about Kardashian’s allegations, and he appeared in one animated video about the case.
“This case is a reminder that when celebrities or influencers endorse investment opportunities, including securities in cryptoassets, that does not mean those investment products are right for all investors,” Gensler said during the SEC announcement. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.” Gensler added:
Mrs. 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 investment in securities.
Essentially, the SEC order notes that the reality TV star and socialite violated anti-spying laws. Without any admission or denial, Kardashian agreed to settle with the SEC for $1.26 million, which includes approximately $260,000 in default penalties. Furthermore, Kardashian has promised not to shill any crypto-asset-related securities for three years. Kardashian has had a rough month as she deals with the controversy surrounding the sex tape that was released with herself and popular singer and actor, Ray J.
What do you think of the accusations against Kardashian for shilling ethereummax? Let us know what you think about this topic in the comments section.
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