The American reality TV star must pay a fine of more than a million dollars, as well as stop advertising products of cryptocurrency companies.
The US Securities and Exchange Commission (SEC) has filed charges against American actress Kim Kardashian, saying the star promoted the EthereumMax (EMAX) token last year. According to the SEC, Kardashian did not disclose the $250,000 payment she received for the promotional post on Instagram. In the post, the actress posted instructions for buying a token for potential investors.
“This case reminds us that when celebrities or other influencers promote something or endorse some investment opportunity, including crypto asset securities, it does not mean that the assets are safe for investors. We urge investors to be more conscious in their choice of investment products and consider potential risks,” said SEC Chairman Gary Gensler.
The head of the Commission added that Kardashian agreed to pay a $1.26 million fine to settle the case. In addition, the star promised to cooperate with the regulator to help with the investigation, and also will not promote crypto-currency securities for the next three years.
Gensler said the case will serve as a reminder to celebrities and others that they are required by law to disclose to the public when and how much they are paid to promote investments in securities.
Recall that at the beginning of the year, Kim Kardashian and boxer Floyd Mayweather were sued by one of the residents of New York, Ryan Huegerich. He stated that celebrities entered into an agreement with the founders of the Ethereum Max project, received part of the tokens and attracted investors to sell their tokens at a price increase.
