A shocking news for all the Kim Kardashian fans. In an exclusive update, Kim Kardashian has been charged over a million dollars in the SEC Crypto case. The SEC has charged the famous internet personality Kim Kardashian for unlawfully touting crypto on her Instagram account. The SKIM CEO has been charged for disclosing that she was paid for the promotions. Read everything about the incident here.
Kim Kardashian Has Been Charged Over A Million Dollars In The Sec Crypto Case
The top U.S. financial regulator has charged celebrity Kim Kardashian for touting a cryptocurrency on her Instagram account without disclosing that she was paid for the promotion-a charge that she is fighting in court. The U.S. Securities and Exchange Commission has charged celebrity Kim Kardashian with failing to disclose that she was paid for touting a cryptocurrency on her Instagram account.
Kardashian, who has around 330 million Instagram followers, was paid $250,000 to promote cryptocurrency offered by EthereumMax called EMAX tokens.
According to regulators, her post also “advertised an upcoming IEO” and provided instructions for potential investors to purchase EMAX tokens. And that violates an “anti-touting provision” in the federal securities laws—which are intended to protect people from fraud. The group claims that Kardashian violated securities regulations when she failed to disclose that she had been paid $250,000 for an Instagram post promoting cryptocurrencies—a form of digital currency made by computers—without mentioning the nature or source of those earnings.
Kim Kardashian Agrees to Pay $1.26 Million to Settle SEC Crypto Charges
After the shocking news of Kim Kardashian getting charged with over a million dollars by SEC crypto, the SKIMS CEO has agreed to settle the charges from the U.S. Securities and Exchange Commission (SEC) “for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.”
The SEC charged CarMax with violating accounting rules in its 2002-04 earnings reports and has demanded that the company pay a $1.26 million fine, give up some of its profits from those years, and cooperate further with the Commission’s investigation into whether other violations occurred during those same time periods.
The case that was announced by SEC on Monday claiming that the famous internet personality has violated the “anti-touting provision”, has now stated that Kim Kardashian has agreed to settle the charges and pay $1.26 million covering all the panelities and disgorments.
There has been a statement released from SKIM’s lawyer stating that Kardashian is pleased to work and resolve this matter with SEC. The statement said that “ 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.”
“She wanted to get this matter behind her to avoid a protracted dispute,” the lawyer adds. “The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits.”
In a statement, SEC Chair Gary Gensler said: “Kardashian’s case is a reminder that celebrities and influencers should use the media to educate their fans about the risk associated with investments—including cryptocurrency.”
“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals,” Gensler continued.
He concluded, “Ms Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.”
As the popularity of crypto has ballooned, companies have spent millions of dollars on marketing. Many of them have hired celebrity spokespersons, including comedian Larry David and actor Matt Damon, to promote their products. But after the value of Bitcoin and other digital currencies plummeted, many of them have been criticized for boosting them.
This isn’t the first time that celebrities have been enlisted for crypto campaigns. In 2016, actress Amber Rose was paid $100,000 by an advertorial company called Uplift Mavens to promote Ethereum, which would allow users to make in-game purchases using cryptocurrency. The advertorial was later removed from Rose’s Instagram account after she accused it of promoting a scam product.