Kim Kardashian fined for illegal promotion of cryptocurrency
Reality TV star and American Socialite, Kimberly Noel Kardashian, popularly known as Kim Kardashian has agreed to pay the sum of $1.26 million in fine to the United States Security and Exchange Commission, after the agency accused her of illegally promoting a volatile crypto token on her Instagram story in June 2021.
How is it an offense?
The Security and Exchange Commission(SEC), in a statement on Monday, said Kardashian did not inform her close to 330million Instagram followers that she was paid $250,00 to influence EMAX tokens EthereumMax-offered digital asset security, leading them to invest in the “shady crypto schemes” that soon collapsed, leaving the crypto investors_ who are mostly her fans_ with empty pockets.
In her Instagram post, Kardashian included a link to the EthereumMax website, where users could find instructions on how to buy EMAX coins.
Is she the first person to be fined for this?
No! The Security and Exchange Commission has also 2018, reached an agreement with a professional boxer, Floyd Mayweather; basketball player, Paul Pierce, and music producer, DJ Khaled for failing to declare the money they made from influencing cryptocurrency investments.
Director of SEC’s division of enforcement, Gurbir Grewal disclosed that “the federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion”.
What’s the agreement between Kardashian and SEC now?
Kardashian’s lawyer, Patrick Gibbs said the reality TV star is pleased to have resolved the matter with the agency, adding that Kardashian cooperated and will continue to do so.
“She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with SEC allows her to do that so that she can move forward with her many different business pursuits”, the email statement said. Kardashian has also agreed to stop endorsing any cryptocurrency-related securities for the next three years.