Kim Kardashian was fined $1.26 million by the United States Securities and Exchange Commission (SEC) after promoting Ethereum Max (EMAX) last year. In fact, she then praised the merits of this dubious cryptocurrency, omitting that she had received the tidy sum of $250,000 from them.
SEC penalizes Kim Kardashian for promoting Ethereum Max
The IS Securities and Exchange Commission (SEC) the United States just after a Kim Kardashian fined $1.26 million your illegal promotion of Ethereum Max (EMAX).
In fact, the latter highlighted this obscure cryptocurrency in one of his Instagram stories last year in a somewhat crude way. Personality, that counts now more than 330 million followers on Instagram”would be omitted” to specify that the attention to the project was paid to him up to 250,000 dollars.
Kim Kardashian has agreed to pay the amount requestedwhich consists of a penalty of 1 million dollars, to which is added 260,000 dollars corresponding to the amount paid to promote the EMAX as well as prejudgment interest.
According to his lawyer, Kim Kardashian would have fully cooperated with the SEC so as not to add length to the matter:
“Madame Kardashian is pleased to resolve this matter with the SEC. […] She has cooperated fully with the SEC from the beginning and will continue to be willing to do whatever she can to assist in this matter. She wants to put this matter behind her to avoid a long conflict. The agreement reached with the SEC allows him to do this and move forward with his many entrepreneurial projects. »
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A large number of people accused
Kim Kardashian is not the only international personality who has drawn attention to this questionable cryptocurrency. Boxer Floyd Mayweather, basketball player Paul Pierce, actor Steven Seagal and rappers DJ Khaled and T.I. were also pinned down by the authorities.
Chinese, the latter was the subject of a class action lawsuit by American investors accusing it of artificially raising the price of the cryptocurrency alongside two of its founders.
The observed curve is reminiscent of the EMAX course many projects of the same order are often promoted in a thoroughly questionable mannerwhich rises in value after being released before falling sharply and never rising again, as shown in the chart below.
EMAX price from launch to date
Gary Gensler, SEC Chairmanhe recalled that not all forms of investment promoted by people were necessarily viable opportunities:
“This case reminds us that when celebrities or influencers endorse investment opportunities, including crypto asset securities, it does not mean that those investment products are suitable for all investors. […] Federal securities laws clearly state that any celebrity or other person promoting the security of crypto assets must disclose the nature, source, and amount of compensation they received in exchange for their promotion. »
For Kim Kardashian, the latter too ban on advertising any cryptocurrency for the next 3 years.
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Source: US SEC
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