Kim Kardashian Fined $1.26 Million For Unlawfully Endorsing Crypto Company Online
A regulatory company EthereumMax has reported that Kim Kardashian had failed to disclose that she was paid $250,000 to publish a post on her Instagram account about Emax tokens. This is the digital asset security that was being offered by EthereumMax.
Now, the celebrity has been fined $1.26 million by SEC for unlawfully promoting crypto. She has been charged for endorsing and not disclosing the amount that was paid to her for the same by the trading company.
A post by her contained a link to the EthereumMax website, which provided instructions to potential investors on how 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. 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,” said SEC chairman Gary Gensler.
It was only last month that the billionaire reality television star and businesswoman had co-founded a private equity company. This is meant to focus on sectors including consumer products, digital and e-commerce, consumer media, hospitality and luxury.
Ms. Kardashian, has an estimated net worth of $1.4 billion. She is said to be co-founded the SKKY Partners with Jay Sammons, the former New York-based global head of consumer, media and retail at the Carlyle Group, one of the world’s largest private equity companies.
While she has not admitted to the wrong doing, she has agreed to pay the fine amount. According to SEC rules, Ms. Kardashian had breached the anti-touting provision of the federal securities law.