the american model kim kardashian will have to pay 1.26 million dollars after a fine from the Securities and Exchange Commission for illegally advertising cryptocurrencies through their social networks.
The government body reported Monday in a statement that the celebrity agreed to resolve (not acknowledge) the charges and cooperate with the ongoing investigation.
SEC Order Finds Kardashian Failed to Disclose She Was Paid $250,000 for an Instagram Post About EMAX Tokensa crypto asset security product offered by the EthereumMax company.
Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.
This case is a reminder 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,” said SEC Chairman Gary Gensler.
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The Kardashian case, he added, also serves “as a reminder to celebrities and others that they are required by law to disclose to the public when and how much they are paid to promote stock investing.”
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Under federal securities laws, any celebrity or other person who promotes a cryptocurrency must disclose the nature, source, and amount of compensation they received in exchange for the promotion.
The SEC order finds that Kardashian violated the anti-advertising provision of the federal securities laws.
The model, “without admitting or denying the findings of the SEC”, agreed to pay the aforementioned 1.26 million dollars, which correspond to the return of what was earned plus interest and a fine of 1 million dollars.
Kardashian also agreed not to promote any crypto asset values for three years.
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