[ad_1]
Kim Kardashian has agreed to settle charges brought by the U.S. Securities and Exchange Commission (SEC) and pay a $1.26 million (£1.1 million) fine for promoting a cryptocurrency on social media, but did not disclose the money she received.
The SEC said the reality TV star and entrepreneur has agreed to cooperate with its ongoing investigation.
Kardashian did not disclose that she was paid $250,000 (£222,000) to post on her Instagram account about EMAX tokens, a cryptoasset security offered by EthereumMax, the agency said.
Kardashian’s post contains a link to the EthereumMax website, which provides instructions for potential investors to buy EMAX tokens.
Gurbir Grewal, director of the SEC’s Division of Enforcement, said in a prepared statement: “Federal securities laws make clear that any celebrity or other individual promoting cryptoasset securities must disclose the nature, source and amount of compensation they receive. job.”
Kardashian has agreed not to promote any crypto-asset securities for three years.
A lawyer for Kardashian said in an email: “Ms. Kardashian is pleased to have resolved this matter with the SEC. Kardashian has cooperated fully with the SEC from the beginning and she remains willing to do her best can assist the SEC in this matter.
“She wants to put this behind her to avoid a protracted dispute. Her agreement with the SEC enables her to do that so she can continue her many different business pursuits.”
While Kardashian is best known for her reality TV show, and she currently appears on Hulu’s Kardashian Sisters show, she’s also a successful businesswoman.
Her brands include SKIMS, which has shapewear, loungewear and other products, as well as a skincare line called SKKN.
Today, we announced charges that Kim Kardashian promoted cryptocurrency securities offered by EthereumMax without disclosing the promotional payments she received.
Kardashian agreed to settle the charges, pay $1.26 million and cooperate with the investigation.
— SEC (@SECGov) October 3, 2022
Cryptocurrencies are getting more and more attention from the U.S. Congress. After wild swings in cryptocurrency valuations, dozens of scams, and hundreds of billions of dollars in gains and losses, a bipartisan proposal last month would hand over the regulation of two popular cryptocurrencies, bitcoin and ether. to the Commodity Futures Trading Commission.
Kardashian isn’t the first celebrity to come to the attention of regulators for her involvement in cryptocurrencies.
In 2018, the agency settled that professional boxer Floyd Mayweather Jr and music producer DJ Khaled did not disclose payments they received to facilitate digital currency investments.
SEC Chairman Gary Gensler said: “This case reminds us that when a celebrity or influencer endorses an investment opportunity, including cryptoasset securities, it doesn’t mean those investment products are suitable for all investors.
“We encourage investors to consider the potential risks and opportunities of investing in light of their financial goals.”
Mr. Gensler added: “Ms. Kardashian’s case also serves as a reminder to celebrities and others that they are required by law to disclose to the public when and how much they are paid to facilitate securities investments.”
This year, crypto investors have seen prices plummet, companies lose wealth and jobs overnight, and some have been accused by federal regulators of operating illegal stock exchanges.
[ad_2]
Source link