The United States Securities and Exchange Commission (SEC) has filed charges against American media personality Kim Kardashian for touting EMAX, a crypto asset offered by EthereumMax, on Instagram without disclosing the payment she received for the endorsement.
The celebrity has agreed to pay the securities watchdog approximately $1.26 million to settle the charges.
In 2017, the SEC prohibited celebrities from using social media networks to persuade the public to purchase crypto assets without reporting the nature, source, and amount paid to them by the company in exchange for the promotion.
Kardashian Received $250k to Promote EMAX
According to the SEC investigations, Kardashian failed to disclose she was paid $250,000 to publish a post about EMAX tokens on her Instagram account. The commission also found that the celebrity’s post included a link to the EthereumMax website which provided users with instructions on how to buy the tokens.
The SEC claimed Kardashian’s failure to report the payments she received for the endorsement violated the anti-touting provision of federal securities laws.
Agrees to Pay $1M in Settlements
The securities watchdog also noted that the celebrity did not deny its findings and has agreed to pay $1.26 million to settle the charges. Kardashian also agreed not to promote any crypto assets for three years.
“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,” SEC Chair Gary Gensler.
It is worth mentioning that Kardashian was sued by investors earlier this year for publishing a post about EMAX tokens.
The class action lawsuit filed in the U.S. District Court for the Central District of California accuses the celebrity of working with EthereumMax to artificially boost the price of EMAX tokens by making “false or misleading statements” on her Instagram posts.
Meanwhile, in June, billionaire tech investor Elon Musk and his companies Tesla and SpaceX were sued for $258 billion by a crypto investor for allegedly promoting the popular memecoin Dogecoin (DOGE).
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Source: https://coinfomania.com/u-s-sec-charges-kim-kardashian/