Kim Kardashian slapped with $1 million fine over a cryptocurrency post

The Securities and Exchange Commission has slapped Kim Kardashian with a fine of more than $1 million for her involvement in a cryptocurrency project.

Kim Kardashian slapped with $1 million fine over a cryptocurrency post
Published Oct 4, 2022 1:07 AM CDT   |   Updated Wed, Oct 26 2022 7:30 PM CDT
1 minute & 13 seconds read time

Kim Kardashian has been ordered to pay more than $1 million by the Securities and Exchange Commission (SEC) over her involvement in a cryptocurrency project called EthereumMax.

The fine stems from an Instagram Stories post that Kardashian posted about EthereumMax's EMAX tokens, which the SEC determined that she didn't disclose was a paid advertisement, which is a violation of the SEC's federal securities laws that require a person must mention that its a paid promotion (if it is a paid promotion). According to the SEC, Kardashian agreed to pay the $1.26 million fine, which it says covers the initial $250,000 she was paid for the post, and any interest made.

Furthermore, Kardashian pledged that she would not promote any cryptocurrency projects or assets for the next three years. In a new video posted to the US Securities and Exchange Commission YouTube channel, Securities and Exchange Commission chair Gary Gensler explained that just because celebrities and influencers endorse investment opportunities, including cryptocurrency assets, it doesn't mean that the celebrity/influencer's promotional product is the "right" purchase for all investors.

"This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn't mean that those investment products are right for all investors. We encourage investors to consider an investment's potential risks and opportunities in light of their own financial goals," said SEC chair Gary Gensler.

Engadget reports that a survey indicated that nineteen percent of people that were made aware of the cryptocurrency project EthereumMax invested in the project. It should be noted that the value of EthereumMax's token plummeted by 98% just a day after Kardashian posted her Instagram Story, leading many investors to believe that Kardashian was involved in a typical pump-and-dump scheme.

Buy at Amazon

DALIX NASA Hat Baseball Cap Washed Cotton Embroidered Logo Pigment Dye

TodayYesterday7 days ago30 days ago
$16.99$16.99$16.99
* Prices last scanned on 12/1/2022 at 8:39 am CST - prices may not be accurate, click links above for the latest price. We may earn an affiliate commission.
NEWS SOURCE:engadget.com

Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science and space news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms. Instead of typical FPS, Jak holds a very special spot in his heart for RTS games.

Newsletter Subscription

    Related Tags

    Newsletter Subscription
    Latest News
    View More News
    Latest Reviews
    View More Reviews
    Latest Articles
    View More Articles