May 28, 2023

Popular US reality star Kim Kardashian has made agreement to pay a $1.26 million fine for an unlawful cryptocurrency advert on Instagram without revealing that she was paid to do so.

The agency accused Kardashian of failing to disclose that she was paid $250,000 to post about EMAX tokens, the crypto asset security being offered by EthereumMax.The fine includes a penalty of $1 million plus $260,000, representing the amount Kardashian paid plus interest with an agreement to not promote any crypto asset securities for three years.

According to her lawyer,”Ms Kardashian is pleased to have resolved this matter with the SEC.”The lawyer said: “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 agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuit”.

SEC Chair Gary Gensler said the case was “a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors.”“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals,” Gensler said in a statement.

Marvelous Ogidi

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