Kim Kardashian The Securities and Exchange Commission was charged and fined $1.26 million for an Instagram post promoting cryptocurrency that was deemed a “pump and sell” scheme in a lawsuit against the photo taker. benefit at the beginning of this year.
On Monday, the SEC announced charges against the 41-year-old reality TV star “for advertising on social media about crypto asset security…. without disclosing the payment she received for the promotion,” New York Post report.
She is said to have earned $250,000 for the promotional post on Instagram.
Kim Kardashian Allegedly Paying $250K for Crypto Instagram Post “Pump & Dump,” Fined $1.23 Million in Penalty
“This is not financial advice, but sharing what my friends just told me about Ethereum Max tokens!” Kim’s post read. “A few minutes ago, Ethereum Max burned 400 trillion tokens – meaning 50% of their admin wallet (and) returned to the entire E-max community.”
The SEC added that Kim K “has agreed to settle the charges, pay $1.26 million in fines, liability and interest, and cooperate,” with an investigation still ongoing.
The SEC charged Kim Kardashian with making an illegal solicitation of cryptocurrency security. She agreed to settle the charges and pay a $1.26 million fine.
We can’t believe she was paid $250,000 for this: pic.twitter.com/al3Ub0RXF7
– Morning Brew ️ (@MorningBrew) October 3, 2022
According to the agency, Kim paid the fines “without admitting or denying the SEC’s findings” and agreed not to advertise any cryptocurrency for three years.
A spokesperson for Kim said: “We are pleased to have this matter resolved” and are “fully cooperating” with the SEC.
A spokesperson for the social media influencer said that Kim was “pleased to resolve this matter” and that she was “fully cooperating with the SEC from the outset”.
“Multiple Sclerosis. Kardashian is happy to have resolved this matter with the SEC,” a spokesperson for Kardashian told the Post.
“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.”
The spokesperson added that “she wanted to work this out behind her back to avoid a protracted dispute.”
“The agreement she reached with the SEC allows her to do that so she can move forward with her various business goals.”
SEC says Kardashian case will make it clear to celebrities that they must disclose payouts when promoting investments
SEC Chairman Gary Gensler said the case against Kim will make it clear to the public that investment opportunities promoted by celebrities and social media influencers “are not (not) appropriate.” suitable for all investors” and grew tired of such promotions, the Post reported.
“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,” said SEC Chairman Gary Gensler.
Gensley added that the case will also make it clear that celebrities and influencers can and will be prosecuted if they fail to publicly disclose how much they have been paid to promote investment opportunities. .
“We encourage investors to consider the potential risks and opportunities of an investment based on their financial goals,” says Gensley.
“Multiple Sclerosis. The Kardashian case 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 investments. in securities”.
The secret to success… hard work and a lot of that. @floydmayweather Share his thoughts on the upcoming war and crypto at the Bitcoin conference in Miami Florida today!
– EthereumMax (@ethereum_max) June 4, 2021
Kardashian, Floyd Mayweather Named in Crypto “Pump & Dump” lawsuit earlier this year
Earlier this year, Kardashian and former boxing champion Floyd Mayweather were named in a lawsuit claiming that they misled their online followers by promoting cryptocurrency schemes that “pump and dump”. price”.
Former Boston Celtics star Paul Pierce is also named in the lawsuit, according to the Post.
Both Kim and Floyd were accused of making “false or misleading statements” while promoting the Ethereum Max token.
“Actually, Defendants marketed EMAX Tokens to investors so that they could sell their share of Float for a profit,” the lawsuit states.
Mayweather paid more than $600,000 in a settlement with the SEC, without acknowledging or denying the regulator’s findings, NBC News report.