The US Securities and Exchange Commision (SEC) charged Kim Kardashian for unlawfully pushing crypto security.
According to the SEC, Kim Kardashian violated the rules while promoting a “crypto asset security offered and sold by EthereumMax” without proper disclosure that she was paid to promote it.
Kim Kardashian has already agreed to settle the case, with a $1.26 million penalty payment. In doing so, she will help the SEC with its ongoing investigation related to this matter.
Kim Kardashian was fined an additional $1 million for not disclosing her payment of $250,000 for a post on her Instagram. The SEC’s settlement requires an additional payment of $260,000, with interest, representing the original amount plus penalties.
SEC chair Gary Gensler posted a message on Twitter to express the commission’s concerns with celebrities providing financial advice to fans. By incorporating more enforcement operations and distinguishing between endorsements and financial advice, they may be able to reduce the number of people who blindly invest in crypto or head up some company’s board.
Gensler further added, crypto assets fall under existing securities laws, including other new technology that replicate traditional securities in form and function. Gensler believes in the power of regulation and this sign is a way to show that he believes so too.
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