The crypto industry has witnessed the arrival and departure of an array of celebrities. While some continue endorsing certain crypto networks, a few others have been facing the wrath of regulators. Reality star Kim Kardashian found herself drowning in troubled waters for a crypto endorsement last year. In more recent news, it was brought to light that Kardashian was being charged for this and had even decided to settle with the Securities and Exchange Commission [SEC] of the US.
As per the SEC’s latest press release, the reality star was charged for “unlawfully touting” a “crypto security” on social media. It was noted that since she failed to disclose how much she made for the promotion of EthereumMax put her into more trouble. She was reportedly paid $250,000 for posting about EMAX tokens on her Instagram. Her post read,
“ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.”
Furthermore, Kim Kardashian certainly did not want to prolong the case. As a result, she reportedly agreed to pay $1.26 million. The payment is reportedly approximately $260,000 in disgorgement as well as prejudgment interest and a $1,000,000 penalty.
In addition to this, she also declared full corporation with the SEC’s investigation. Kardashian also affirmed that she wouldn’t take part in any activity around crypto asset securities for the next three years.
SEC Chair Gary Gensler alerts celebrities to stay wary
Addressing Kim Kardashian’s latest case, SEC Chair Gary Gensler notes how celebrities must disclose details about their payment while promoting investments in securities. He added,
“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.”
Investors of EthereumMax had previously sued NBA star Paul Pierce and boxer Floyd Mayweather Jr. along with Kim Kardashian.