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Kim Kardashian to pay $1.26 million for promoting crypto on Instagram

Kim Kardashian to pay $1.26 million for promoting crypto on Instagram

Kim Kardashian to pay $1.26 million for promoting crypto on Instagram
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By Pihu Yadav  Oct 4, 2022 3:46:59 PM IST (Updated)

According to a statement from the SEC, influencer and reality television star Kardashian did not disclose that she received $250,000 from EthereumMax to post on her Instagram account about the crypto asset security known as EMAX tokens.

The US Securities and Exchange Commission (SEC) said on Monday that reality TV star Kim Kardashian has agreed to settle allegations of improperly endorsing cryptocurrency securities and to pay $1.26 million in fines, disgorgement, and interest.

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According to a statement from the SEC, influencer and reality television star Kardashian did not disclose that she received $250,000 from EthereumMax to post on her Instagram account about the crypto asset security known as EMAX tokens.
"This case is 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," SEC Chair Gary Gensler said. "We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals."
According to a statement by SEC, the order finds that Kardashian violated the anti-touting provision of the federal securities laws. Without admitting or denying the SEC’s findings, Kardashian agreed to pay the aforementioned $1.26 million, including approximately $260,000 in disgorgement, which represents her promotional payment, plus prejudgment interest, and a $1,000,000 penalty. Kardashian also agreed to not promote any crypto asset securities for three years.
The US regulator also charged Boxer Floyd Mayweather Jr. and a music producer known as "DJ Khaled" in November 2018 for allegedly not disclosing payments they received for promoting investments in initial coin offerings.
Neither Mayweather nor Khaled Mohamed Khaled admitted or denied the SEC's charges, but agreed to pay a combined $767,500 in fines and penalties.
(With inputs from Reuters)
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