Kim Kardashian has landed in sizzling water with the feds over an Instagram put up selling a cryptocurrency asset that has been blasted by critics as an alleged “pump and dump” scheme.
The Securities and Exchange Commission introduced on Monday that it has charged the truth tv star and social media influencer “for touting on social media a crypto asset security…without disclosing the payment she received for the promotion.”
The SEC stated that Kim Ok “agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate” with the continued investigation.
Kardashian paid the penalties “without admitting or denying the SEC’s findings,” based on the company. She additionally agreed to chorus from selling any crypto asset securities for 3 years, the federal government stated.
According to the feds, Kardashian “failed to disclose” that she was paid $250,000 to put up an merchandise to her tens of thousands and thousands of Instagram followers touting EMAX crypto tokens, the digital coin that was provided up on the market by EthereumMax.
“Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens,” the SEC said in a statement.
“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,” stated SEC Chair Gary Gensler.
“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
“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.”
Earlier this year, Kardashian and former boxer Floyd Mayweather had been named in a lawsuit alleging they misled their on-line followers into shopping for cryptocurrency as a part of a “pump and dump” scheme.
Kardashian and Mayweather had been accused of creating “false or misleading statements” whereas selling EMAX.
“In truth, Defendants marketed the EMAX Tokens to investors so that they could sell their portion of the Float for a profit,” the go well with provides.