Kim Kardashian has reached a settlement with the SEC, the US capital markets regulator, to end the cryptocurrency advertising saga. In June of last year, the influencer promoted Ethereum Max on Instagram as an investment, but did not disclose to the regulator that he received $250,000 to advertise on the social network.
“This is not financial advice, but I am sharing what my friends told me about the EthereumMax ‘token’,” Kim Kardashian shared on Instagram last year.
In a statement, the SEC indicates that Kim Kardashian agreed to pay $1.26 million following the regulator’s investigation. “This case is a reminder that when celebrities or influencers promote investment opportunities, including crypto assets, it does not mean that these investment products are suitable for all investors,” SEC Chairman Gary Gensler said in a statement. .
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The same note indicates that the influencer and star of reality show “Keeping Up With the Kardashians” has agreed to cooperate with the ongoing investigation and will not promote crypto assets for the next three years.
According to CNBC, which cites a statement from Kim Kardashian’s lawyer, the payment of these 1.26 million is made to “avoid a dispute.” “The agreement that he reached with the SEC allows him to move forward with other different business objectives.”
The SEC considers that, although the publication made by Kim Kardashian had the indication #ad, used in social networks to indicate to users what content is advertising, it did not communicate to the regulatory entity that it received money for the publication. The influencer received $250,000 in exchange for advertising this cryptocurrency. In this way, Kim Kardashian broke federal asset rules.
The regulatory entity details that the total of 1.26 million refers to an amount of 260 thousand dollars, for payment received and respective interests. The remaining million dollars corresponds to the fine itself.
In addition to Kim Kardashian, NBA star Paul Pierce and boxer Floyd Mayweather Jr. were sued by investors for promoting this crypto asset.
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Source: Observadora
