According to some media outlets, model and businesswoman Kim Kardashian will have to pay $1.26 million after a fine from the Securities and Exchange Commission (SEC) for having illegally advertised cryptocurrencies through their networks. social.
Through a statement, the government body reported that Kim agreed to resolve the charges and cooperate with the ongoing investigation. However, this does not mean that he has admitted such charges against him.
According to the SEC order, Kim failed to disclose that he was paid $250,000 for a post on his Instagram account about a crypto asset offered by EthereumMax. As if that were not enough, it is understood that said publication contained a link to the website, in which she provided instructions for potential investors to buy the EMAX tokens.
On June 13, in a video shared on her social network, the celebrity was seen anticipating a “big announcement” and then a message inviting her followers to invest in this site. In addition, she promoted an offer of crypto assets, but never specified that it was advertising.
Hey guys, are you into crypto? This is not financial advice, I just wanted to share what my friends have told me about EthereumMax tokens.
For his part, the president of the SEC, Gary Gensler, cited in his statement that this case is a reminder that even when celebrities recommend a product, it does not mean that it is the most appropriate to acquire.
We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial objectives.
In addition, he added that this event serves as a reminder that the law requires celebrities and other people to disclose to the public when and how much they are paid to promote investment in securities.
Even if Kim has not accepted responsibility, it should be remembered that under federal securities laws, any celebrity or other person who promotes a cryptocurrency must disclose the nature, source, and amount of compensation received in exchange for the promotion. For that reason, by violating the provision against advertising, Kim must pay the fine, the amount of which corresponds to the return of what was earned plus interest.