Kim Kardashian To Pay $1.2 Million And Settle With SEC On EthereumMax Promotion

By Bitcoinist - 1 жыл мурун - Окуу убактысы: 3 мүнөт
Дш, 3 -октябрь, 2022, 1:47

Kim Kardashian To Pay $1.2 Million And Settle With SEC On EthereumMax Promotion

Ал боюнча пресс-релиз from the Securities and Exchange Commission (SEC), influencer and socialite Kim Kardashian was charged with allegedly promoting a “crypto security”, called EthereumMax. The celebrity has agreed to cooperate with the regulator’s investigation.

This is not the first time that Kim Kardashian has had to enter or settled a legal action against her. In the crypto space, the EthereumMax promotion has been chasing her across 2022 and might set the ground for other actions against other celebrities.

In late 2021, Kim Kardashian used her Instagram account to promote a project called EthereumMax and its native token EMAX. The socialite was transparent with her followers and disclosed that the post was an advertisement, but this failed to deter the SEC from pressing charges.

According to the release, Kim Kardashian failed to disclose the payment she received for her Instagram post promoting EthereumMax. The post invited her followers to visit the crypto project’s website and provided them with instructions to buy EMAX. Kardashian has over 300 million followers on the platform.

Therefore, her endorsement was sure to cause an impact on the price of the cryptocurrency, classified as a “crypto security” by the regulator. Kardashian was paid $250,000 for promoting the project.

The celebrity will settle with the SEC, she has agreed to pay $1.26 million in penalties, including her promotional payment for EthereumMax. In addition, the socialite agreed to stop promoting “crypto securities” for the coming three years and to cooperate with the SEC’s ongoing investigation.

The regulator claims that Kardashian breached the anti-touting provision of the federal securities laws and is using her high profile and fame to set an example. Via its official Twitter handle, the SEC’s Chairman Gary Gensler stated the following:

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. We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.

бүгүн @SECGov, биз Ким Кардашянды крипто коопсуздугу боюнча мыйзамсыз иш-аракет кылгандыгы үчүн айыптаганбыз.

Бул окуя, атактуулар/эффективдүү адамдар инвестициялык оппцияларды, анын ичинде крипто-активдик баалуу кагаздарды колдогондо, бул инвестициялык продуктылар бардык инвесторлор үчүн туура келет дегенди билдирбейт.

- Гари Генслер (@GaryGensler) October 3, 2022 

Further commentaries from the SEC’s Director of the SEC’s Division of Enforcement Gurbir Grewal claim that U.S. securities laws are “clear” on crypto securities endorsement. In that sense, he stated:

Баалуу кагаздар боюнча федералдык мыйзамдар крипто активинин коопсуздугун илгерилеткен ар бир атактуу адам же башка инсан жылдыруу үчүн алган компенсациясынын мүнөзүн, булагын жана өлчөмүн ачып бериши керек экени айкын.

However, the term “crypto security” has only been recently introduced by the SEC. The regulator is currently trying to obtain more power to oversight the entire crypto industry and has implemented this term as part of its narrative: that all crypto is a security with the exception of Bitcoin, as the SEC Chair has hinted.

As Bitcoinболуп саналат билдирди two months ago, Kim Kardashian is facing a class action lawsuit in the U.S. for her alleged involvement in a “Pump-and-Dump” scheme. Her lawyers have attempted to dismiss the charges against her, but with no success so far.

Original булагы: Bitcoinболуп саналат