Fashion mogul Kim Kardashian has once again made it to the headlines and this time it is definitely not for good reasons. Amid all the drama in her life, she had once again witnessed problems and as per the latest reports Kim has been fined by the US Securities and Exchange Commission (SEC) for $1.26 million for unlawfully promoting an illegal crypto investment scheme on Instagram.
The SKIMS founder recently promoted a crypto asset offered and sold by EthereumMax without disclosing the payment she received for the promotion. In the aftermath, Kim has been asked to pay a whooping fine including the full amount she received for the posting and a penalty.
A Just Jared report shared the reason for Kim Kardashian was slapped with the fine and maintained that SEC’s commission said, “Kardashian failed to disclose that she was paid $250,000 (around Rs 2.04 crore) to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax.”
ALSO READ: Kim Kardashian Faces Brutal Backlash As She Body-shames sister Khloé Kardashian On National Television; Takes A Dig At Kendall And Kylie Jenner Also!
The commission further added “Kim Kardashian violated the anti-touting provision of the federal securities laws. Without admitting or denying the SEC’s findings, Kardashian agreed to pay the aforementioned $1.26 million (approx. Rs 10.27 crore), including approximately $260,000 (around Rs 2.12 crore) in disgorgement, which represents her promotional payment, plus prejudgment interest, and a $1,000,000 (around Rs 8.15 crore) penalty. Kardashian also agreed to not promote any crypto asset securities for three years.”
SEC chair Gary Gensler continued as he 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.” He added, “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.”
For the unversed, Kim Kardashian posted a series of posts on her Instagram story, the mother of four asked her followers, “Are you guys into crypto??? This is not financial advice but sharing what my friends just told me about the ethereum max token!” Her followers were then encouraged to head to the EthereumMax website and “join the E-Max community”.
Image Source: Instagram