The worldwide known celebrity Kim Kardashian has recently been involved in some turmoil regarding the cryptocurrency world.
The reality TV actress and influencer have settled SEC accusations that she failed to disclose a payment she received for promoting a cryptocurrency on her Instagram page, the agency revealed Monday morning.
The chairman of the U.S. Securities and Exchange Commission shed light to Kardashian’s case – arguing that celebrities should be more careful when endorsing investment opportunities to its fans.
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto-asset securities,” Gensler said. “It doesn’t mean that those investment products are right for all investors.”
Gensler said the case also serves as a reminder that the law requires celebrities and others to disclose when and how much they are paid to promote investing in securities.
According to Gensler, the case should be a signal that U.S. law requires anyone, including celebrities, to disclose exactly when and how much they receive for endorsing security investments.
The SEC charged Kardashian on Monday with failing to register that she was paid $250,000 by EthereumMax, via an intermediary, to write a post regarding EMAX tokens, a crypto asset issued by EthereumMax.
The tweet, which contained the hashtag “#ad,” also provided a link to the EthereumMax website, which instructs visitors on how to purchase the tokens, according to the regulator.
According to the SEC, Kardashian, who is allegedly worth US$1.8 billion, agreed to pay US$1.26 million to resolve the accusations stemming from a promotion on Meta’s Instagram for EthereumMax’s crypto asset.
She will also comply with an ongoing investigation and has agreed not to market cryptocurrency securities for three years, according to the regulator.
Kardashian’s Lawyer’s Statement
Kardashian’s lawyer stated in a press release that the celebrity is relieved the situation has been concluded and that she endorses every decision by the SEC.
“Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter,” The Statement said. “She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits,”
Kim Avoided Bigger Repercussion By Complying With The SEC
Kim Kardashian’s deal with the SEC allowed the celebrity to escape a considerably more intrusive procedure that might have included deposition and even document collection.
It also provided the SEC with an opportunity to make an example of a star. Warning every influencer to follow the rules when promoting securities in the future.
By complying with the United States Government, Kardashian avoids a legal suit that would likely take a lot more time and money to conclude.
Kardashian’s Former Crypto Promotions
This is not the first time Kim has been involved in promoting cryptocurrencies to her over 330 million followers in the past.
In June of 2021 – Kardashian also promoted EthereumMax in an Instagram post that read:
“Are you into Crypto? This is not financial advice but sharing what my friends just told me about the EthereumMax token.”
At the time, investors also sued Kardashian with the accusation that one of the biggest celebrities in the world was artificially inflating EthereumMax’s token for personal gains.