SEC fines Kim Kardashian US$1.26 mln for promoting EMAX

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Real­i­ty TV star Kim Kar­dashi­an has been fined US$1.26 mil­lion by the U.S. Secu­ri­ties and Exchange Com­mis­sion (SEC) for pro­mot­ing Ethereum­Max (EMAX) tokens on her Insta­gram account with­out dis­clos­ing the US$250,000 pay­ment she received for the endorsement.

See relat­ed arti­cle: Bol­ly­wood megas­tar Amitabh Bachchan ponies up tax on NFT sale

Fast facts

  • The SEC said in a state­ment on Mon­day that Kar­dashi­an has agreed to set­tle and will not pro­mote “cryp­to asset secu­ri­ties” for three years.
  • “The fed­er­al secu­ri­ties laws are clear that any celebri­ty or oth­er indi­vid­ual who pro­motes a cryp­to asset secu­ri­ty must dis­close the nature, source, and amount of com­pen­sa­tion they received in exchange for the pro­mo­tion,” Gur­bir S. Gre­w­al, the agency’s direc­tor of the enforce­ment divi­sion, said in the statement.
  • EMAX, a token that the SEC calls a “cryp­to asset secu­ri­ty,” was worth almost noth­ing at 10:00 p.m. Hong Kong time, accord­ing to CoinGecko data.
  • Last year, Kar­dashi­an was sin­gled out for endors­ing Ethereum­Max by Charles Ran­dell, then-chair­man of the U.K. Finan­cial Con­duct Authority.
  • In Nov. 2017, the SEC warned that celebri­ty endorse­ments of invest­ment prod­ucts may be unlaw­ful if com­pen­sa­tion is not dis­closed in pro­mo­tion campaigns. 
  • Over in Asia, the Secu­ri­ties and Exchange Board of India said in May that no promi­nent pub­lic fig­ures should endorse cryptocurrencies.

See relat­ed arti­cle:  Tai­wan icon Jay Chou’s PhantaBear NFT dethrones Bored Ape Yacht Club

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