Kim K. has been charged with securities fraud by the SEC for allegedly failing to disclose that she was compensated for promoting a cryptocurrency asset security issued and sold by EthereumMax. Kardashian has settled with the Commission for $1.26 million, which includes fines, restitution, and interest. Additionally, the “Keeping Up With the Kardashians” star has also promised to help with the inquiry.
The SEC found that Kardashian violated its rules by failing to adequately disclose that EthereumMax had paid her $250,000 to endorse EMAX tokens, a crypto asset investment. If you want to know more about investing in EMAX coins, you may do so by visiting the EthereumMax website, which is linked to Kim Kardashian’s article. They may go there by clicking on the link.
“This case is a reminder that just because a celebrity or influencer endorses an investment opportunity, including crypto-asset securities, it does not guarantee that such investment products are appropriate for all investors,” stated Gary Gensler, chair of the Securities and Exchange Commission (SEC). Our advice to buyers is to weigh the costs and advantages of any investment in light of their own unique financial objectives.
Chair Gensler stated that the situation with Ms. Kardashian serves as a reminder to celebrities and others that the law compels them to disclose to the public when and how much they are paid to advocate investment in securities. Meaning that this case serves as a “reminder” to celebrities and others who are required to do so by law. Director of the SEC’s Division of Enforcement Gurbir S. Grewal has said that the federal securities regulations make it plainly apparent that any celebrity or other individual who promotes a crypto asset security must disclose the kind, source, and amount of money they got in exchange for the promotion.
The Securities and Exchange Commission (SEC) alleges that Ms. Kardashian did not declare whether or not the publicity of security is objective, although “the federal securities regulations are clear that any celebrity or other individual who supports a crypto asset security must do so.” The SEC’s ruling states that Kardashian has broken the federal securities statute that forbids touting.
Disgorgement of around $260k (representing the money she received for promotional purposes), prejudgment interest of about $200k, and a $1 million penalty were all part of Kardashian’s $1.26 million settlement with the SEC. Kardashian neither confirmed nor denied the SEC’s claims. Furthermore, Kardashian has said that she would not advocate for the purchase or sale of any equities based on cryptocurrency for the next three years.
Jon A. Daniels, Alison R. Levine, and Pamela Sawhney of the SEC’s Crypto Assets and Cyber Unit, as well as Kerri Palen, Lisa Knoop, and Victor Suthammanont of the SEC’s New York Regional Office, are heading up the investigation. According to sources, Kerri Palen, Lisa Knoop, and Victor Suthammanont are also collaborating with them.
Carolyn Welshhans and Mark R. Sylvester, both of the Crypto Assets and Cyber Unit, supervised the operation. Here is the SEC’s statement warning investors away from bitcoin asset offerings backed by A-listers. Gensler, the chairman of the Securities and Exchange Commission (SEC), has released a video in which he cautions investors against relying only on the advice of a celebrity or other influential person when making financial choices.
