Washington, Oct 3 (EFE).- Kim Kardashian has agreed to settle charges totalling $1.26 million for an unlawful cryptocurrency advert she published on social media, the United States Securities and Exchange Commission said Monday.
The SEC ordered the celebrity to pay the charges after it found she had not disclosed that she had been paid $250,000 to publish an Instagram post about EMAX, a crypto token linked to Ethereum Max.
“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,” said SEC Chair Gary Gensler in a statement.
“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
The ad posted by Kardashian included a link to EthereumMax with instructions on how to buy EMAX tokens.
“Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities,” Gensler added.
Kardashian was sued in a class action case lodged by investors in January along with former professional boxer Floyd Mayweather. Jr, NBA player Paul Pierce and the founders of cryptocurrency — which is not linked to Ethereum — over an alleged “pump and dump” scheme. EFE