WASHINGTON(Washington Insider Magazine)- Kim Kardashian was charged by the Securities and Exchange Commission on Monday for a post she made endorsing cryptocurrency security offered by EthereumMax without disclosing the fee she got for the promotion.
According to the SEC’s notice, Kardashian will pay $1.26 million to settle the civil charges.
According to the SEC, Kardashian did not disclose that she had been paid $250,000 to post on her Instagram account about the EthereumMax-offered crypto asset security known as EMAX tokens.
According to SEC Chair Gary Gensler, “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.”
According to the SEC, the $1.26 million settlement includes a $1 million fine in addition to the amount Kardashian got for the marketing. The agency noted that Kardashian also consented to refrain for 3 years from promoting any crypto asset securities.
Kim Kardashian has always completely cooperated with the SEC, according to Kim’s attorney, and she is still ready to do anything she can to help the SEC in this situation.
Kardashian is one of several celebrities mentioned in a class action lawsuit brought by investors who claim they lost money after the celebrities pushed the cryptocurrency in question, according to ABC NEWS. The case was filed in January in a California U.S. District Court. This court case is still ongoing.
The complaint claimed that the plaintiffs made their investments after seeing multiple celebrity endorsements of EMAX.
Kardashian requested that the case be dismissed last month, claiming that none of the investors had indicated they had seen her promotional Instagram posts.
On Monday, the price of an EthereumMax coin decreased by 1.75%.
