Kim Kardashian’s Crypto Ads Are Illegal by the SEC – Hollywood Life

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The Securities and Exchange Commission charged a fee Kim Kardashian to “tout on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.” Kim allegedly failed to disclose that she was paid $250,000 to promote the crypto asset. She has agreed to settle the charges with the SEC and will pay $1.26 million in fines, liability, and interest. Kim has also agreed to cooperate with the SEC’s ongoing investigation into the matter.

“Multiple Sclerosis. Kardashian is happy to have resolved this matter with the SEC,” said an attorney for Kim HollywoodLife. “Kardashian has fully cooperated with the SEC from the beginning and she remains willing to do whatever she can to assist the SEC in this matter. She wanted to settle this matter behind her back to avoid a protracted argument. The agreement she reached with the SEC allows her to do that so she can move forward with her various business goals.”

Kim’s post about EthereumMax’s EMAX token includes a link to the brand’s website. “This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it does not mean that products that investment is suitable for all investors,” the SEC Chairman said. “We encourage investors to consider the potential risks and opportunities of an investment against their own financial assets.” The president also noted that celebrities are required to publicize how much they are paid when promoting collateral.

Kim’s $1.26 million payment was for a $1 million fine and $260,000 in fines, equal to what she was paid for the ad. She also agreed not to promote any other crypto security for three years, according to the SEC.