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The United States Securities and Exchange Commission (SEC) has fined reality TV Star, Kim Kardashian “$1.26 million in penalties, disgorgement, and interest, and cooperate”.
Kim’s sanctioning is coming after she posted a promotional post on EthereumMax’s EMAX crypto token which she was paid $250,000 for the promotion which has now been ruled as a “pump and dump” scheme.
According to the SEC, the reality TV Star had not indicated to her audience that the post was promotional.
In a statement, the SEC Chair, Gary Gensler warned investors that celebrity endorsements do not guarantee the accuracy of such investments.
“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.
“Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities,” Gensler said.
Aside from this fine, the US SEC also banned Kim from promoting cryptocurrency for the next three years.
“Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.”
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