A major Hollywood celebrity is being forced to pay fines by the U.S. Securities and Exchange Commission (SEC) for promoting crypto on social media.
American businesswoman and media personality Kim Kardashian is being fined almost $1.3 million, according to an official SEC press release.
The SEC says that Kardashian caught the regulator’s eye when she promoted an ERC-20 token called EthereumMax (EMAX) without disclosing that she was being paid to do so.
“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.”
Says SEC Chairman Gary Gensler of the case,
“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”
In a new interview with CNBC’s Squawk Box, Gensler points out that Ms. Kardashian is far from the first celeb the SEC has gone after.
“We’ve brought a case a number of years ago with Floyd Mayweather, DJ Khaled, Steven Segal, and others over the years. So this is another time we’ve brought a case out.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/Outer Space