Kim Kardashian agrees to pay fine for failing to disclose income from EthereumMAX ads
The Securities and Exchange Commission fined TV star Kim Kardashian $1.26 million. For promoting the cryptocurrency EthereumMax (EMAX) on social networks. Superstar did not disclose the income she received for this promotion, according to a press release from SEC.
Our experts found out that Kardashian did not disclose that she was paid $250,000 by posting a post on her Instagram account about EMAX tokens. Kardashian post contained a link to EthereumMax website with instructions for potential investors to buy their tokens.
“Ms. Kardashian case serves as a reminder to celebrities and others. That the law requires disclosure to the public of when and how much they are paid to facilitate an investment in securities,” said SEC Chairman Gary Gensler.
Kim Kardashian violated a provision of federal securities laws prohibiting advertising. Without admitting or denying the SEC charges, Kardashian agreed to pay $1.26 million. Included in her indictment is compensation for advertising revenue she received of about $260,000. And interest and a fine of $1 million. Kardashian also agreed not to promote cryptocurrencies for three years.