Kim Kardashian was fined $1.26 million by the United States Securities and Exchange Commission (SEC) following her promotion of Ethereum Max (EMAX) last year. Indeed, she had then praised the merits of this dubious cryptocurrency, omitting that she had received the tidy sum of $ 250,000 from them.
SEC punishes Kim Kardashian for promoting Ethereum Max
The Securities and Exchange Commission (SEC) of the United States has just inflicted a $1.26 million fine for Kim Kardashian for the illegal promotion of Ethereum Max (EMAX).
Indeed, the latter had highlighted this fuzzy cryptocurrency in one of her Instagram stories last year in a somewhat crude way. Personality, which currently counts more than 330 million followers on Instagramwould have “omitted” to specify that the highlighting of the project had been paid to him up to 250,000 dollars.
Kim Kardashian has agreed to pay the amount requestedwhich is composed of a penalty of 1 million dollars, to which are added 260,000 dollars corresponding to the amount paid for the promotion of the EMAX as well as for prejudgment interest.
According to his lawyer, Kim Kardashian would have fully cooperated with the SEC so as not to prolong the matter:
“Madame Kardashian is pleased to have resolved this matter with the SEC. […] She has cooperated fully with the SEC from the outset and will remain willing to do whatever she can to assist in this matter. She wants to put this affair behind her in order to avoid a protracted conflict. The agreement reached with the SEC allows him to do this and to move forward with his many entrepreneurial projects. »
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A large number of accused personalities
Kim Kardashian is not the only international personality to have highlighted this dubious cryptocurrency. Boxer Floyd Mayweather, basketball player Paul Pierce, actor Steven Seagal and rappers DJ Khaled and TI were also pinned down by the authorities.
Indeed, the latter were the subject of a class action lawsuit by American investors accusing them of having artificially inflated the price of the cryptocurrency alongside 2 of its founders.
The curve observed for the course of EMAX recalls many projects of the same order often put forward in a thorough and dubious waywhose value soars after its release before falling sharply and never rising again, as shown in the chart below.
EMAX price from its launch to today
Gary Gensler, Chairman of the SECrecalled that not all forms of investment promoted by personalities 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 who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for their promotion. . »
Regarding Kim Kardashian, the latter also a ban on advertising any cryptocurrency for the next 3 years.
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Source: US SEC
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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