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Kim Kardashian to Pay $1.3M Fine to Settle SEC Charges Over Crypto Promotion

Kim Kardashian has agreed to pay a $1.26 million fine after federal regulators said she illegally promoted a cryptocurrency on Instagram without disclosing how much she was paid for the promotion, it was announced on Monday. morning of officials from the Securities and Exchange Commission.

Federal regulators said the reality TV star did not disclose that she was paid $250,000 to post an Instagram post about EMAX tokens, a crypto asset offered by EthereumMax, the SEC said in a statement. communicated.

She shared the post in June last year, asking her millions of followers: “ARE YOU IN CRYPTO??? HAVE SAID ABOUT THE ETHEREUM MAX TOKEN.

The message included a link to the EthereumMax website, which contained instructions for potential investors to purchase EMAX tokens, according to the SEC statement.

In doing so, she violated the anti-soliciting provision of federal securities law, he said.

Kardashian agreed to pay $1.26 million in penalties, which includes her promotional payment, and to cooperate with the commission’s investigation “without admitting or denying the findings of the SEC,” the statement said.

It also agreed not to promote any crypto assets for three years, according to officials.

“This case reminds us that when celebrities or influencers endorse investment opportunities, including crypto asset securities, it does not mean that those investment products are suitable for all investors,” the chairman said. of the SEC, Gary Gensler. “We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial objectives.”

A Kardashian attorney said the star was “pleased to have this matter resolved with the SEC.”

“Kardashian has cooperated fully with the SEC from the outset and remains willing to do whatever it can to assist the SEC in this matter,” his attorney said. “She wanted to put this matter behind her to avoid a protracted dispute. The deal she made with the SEC allows her to do just that so she can move forward with her many different business pursuits.

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