Crypto: Kim Kardashian fined $1.26 million

The SEC seems to be on the lookout to spot the slightest breach of crypto law and punish the culprits. As proof, she recently indicted reality TV star Kim Kardashian for illegally promoting a cryptocurrency. Here is the point of the situation.

Kim charged

The SEC accused Kim Kardashian of illegally promoting the crypto EthereumMax (EMAX). Indeed, the American star would have praised the merits of this asset on social networks, without indicating the payment she received in exchange. According to the SEC order, Kim Kardashian received $250,000 to promote EMAX tokens. Without disclosing this amount, as required by law, she published a post on her Instagram account regarding EthereumMax.

In the post, there was a link to the cryptocurrency website. We find on the site the instructions to follow to invest in crypto by buying EMAX tokens. Kim Kardashian has neither admitted nor denied the SEC’s findings. She even showed herself to be cooperative by notably agreeing to no longer promote cryptocurrencies for three years.

The reality TV star also agreed to pay a fine of $1.26 million. This amount breaks down as follows: $260,000 disgorgement (to return the promotional payment) and prejudgment interest, and $1 million penalty.

Gary Gensler, Chairman of the SEC said that this case must “remind celebrities and others that they are required by law to disclose to the public when and how much they are paid to promote investment in securities». And to continue:We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial objectives“, he added. You should know that the SEC’s investigation into this matter is continuing.

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