SEC Charge Kim Kardashian $1,300,000 Fine After Promoting EthereumMax on Social Media

The US Securities and Exchange Commission (SEC) has give a fine to Hollywood celebrity, Kim Kardashian for promoting cryptocurrency on social media.

“The Securities and Exchange Commission today announced charges against Kim Kardashian for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion,” according to the press release.

Being Fined Nearly $1.3 Million

An official SEC press release revealed Kim Kardashian was fined almost $1.3 million. In a statement, the SEC stated that Kardashian caught the regulator’s attention when she was promoted on EthereumMax (EMAX) without disclosing the fact that she was paid for it.

“Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation,” cited to the press release.

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“The SEC’s order finds that Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax. Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens,” it detailed.

Despite not admitting or denying the SEC’s allegations, Kardashian settled the case and agreed not to promote any cryptocurrency assets until 2025.

Meanwhile, SEC chairman Gary Gensler tweeted, “Today  @SECGov , we charged Kim Kardashian for unlawfully touting crypto security. This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.”

The Response of Online Crypto Community

Gensler’s tweet was followed by comments from the online crypto community, including complaints about inconsistent enforcement by the SEC.

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The anti-Bitcoin (BTC) economist Peter Schiff criticized what he perceived as an unfair targeting of Kardashian, pointing out that MicroStrategy co-founder Michael Saylor has “more to gain pumping crypto”.

“The SEC is fining  @KimKardashian  $1.2 million for pumping #crypto. What about the real pumpers?  @Saylor  had much more to gain from pumping crypto than Kim. Or  @CNBC  paid millions for ads by crypto companies, then pumping #Bitcoin non-stop while providing industry pumpers with airtime?,” tweeted him.

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Jamilatul Mahmudah

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