Crypto Security. With a press release, the US Securities and Exchange Commission (SEC) stated that it has filed charges against Kim Kardashian. According to the Commission, the celebrity is being investigated for promoting a cryptocurrency security asset on social media without disclosing any financial gain.
EthereumMax is a provider of the aforementioned crypto asset. According to the Commission’s press statement, Kardashian has settled the complaint by paying a $1.26 million penalty and interest. Furthermore, she would help the US SEC with their crypto asset probes.
According to the order issued by the Commission, Kardashian did not report receiving $250,000 to write an Instagram post promoting EMAX’s crypto assets. In her message, she provided a link to the service provider’s website, where interested parties may learn more about acquiring EMAX tokens and make a purchase.
Gary Gensler, chairman of the Securities and Exchange Commission, commented on the matter in a press statement, saying that it serves as a reminder that just because an influencer or celebrity backs an investment opportunity, that doesn’t make it a good one. He went on to say that investors should weigh the benefits of an opportunity against any downsides in light of their own objectives.
When You Get Past the People Who Have Influenced You
Gensler said that the Kardashian case serves as a reminder that public figures have a responsibility to disclose when and how much they are compensated for promoting investments.
Gurbir Grewal, the head of the SEC’s Enforcement Division, has stated that the relevant provisions of the Federal Security Code are unambiguous. It makes it crystal apparent that anyone advocating for crypto security must reveal the origin of the security, its purpose, and any financial gain from advocating for it. Inadequately disclosing that the promotion of any security is objective is important to investors, and Ms. Kardashian failed to do so.
According to the SEC, Kardashian violated anti-touting regulations set down by the Federal Security Act. Kardashian settled for the reported $1.26 million punishment without confirming or rejecting the allegations. The sum comprises a $1,000,000 punishment and a $260,000 disgorgement fee, the latter representing reimbursement for the promotion she offered.
Diverse officers from across the Commission’s many units work together to conduct the ongoing investigation into possible violations of federal securities laws. Mark R. Sylvester, of the Crypto Asset and Cyber Unit, is in charge of it.