The model decides to cooperate with the investigation, agrees to pay $1.26 million and is not allowed to advertise the value of crypto assets for three years.
American model Kim Kardashian Must pay $1.26 million after fines from the Securities and Exchange Commission This is due to the illegal announcement of cryptocurrencies through social networks.
The agency reported in a statement on Monday: The celebrity has settled the accusations and has agreed to cooperate with the ongoing investigation.
The SEC order determines: Kardashian did not disclose that he received $250,000 for posting on his Instagram account about the EMAX token. a crypto asset security product provided by Ethereum Max.
Kardashian’s post included a link to the EthereumMax website.that side Website provided instructions for potential investors to purchase EMAX tokens .
SEC Chairman Gary Gensler said, “This case shows that just because celebrities and influencers endorse investment opportunities involving cryptocurrency securities, those investment products are not suitable for all investors. It’s a reminder that there are no limits.”
Kardashian’s lawsuit “is also a reminder to celebrities and others that the law requires public disclosure of when and how much is paid to encourage stock investment,” he said. added.
Under federal securities laws: Celebrities and others promoting cryptocurrencies must disclose the nature, source and amount of compensation received in exchange for promotion .
Kim Kardashian raised $1.25 million to promote crypto on social media – could other celebrities get charged? https://t.co/Ob7I20uiLc
— Aldon Smith (@AldonSmith7) October 4, 2022
An SEC order found that Kardashian had violated the federal securities law’s no-advertisement provision. I have agreed to pay the above $1.26 million.
Kardashian also agreed not to advertise the value of crypto assets for three years.