Kim Kardashian, the celebrity from the U.S. is barred from doing Crypto promotions for three years and is asked to pay $1 million plus interest to settle federal charges that she recommended crypto security to her 330 million Instagram followers without making clear that she was paid to do so. The Securities and Exchange Commission announced Monday about the imposed fine.
The agency accused Kardashian, who has 331 million followers on Instagram, making her one of the top ten most followed people on the global social network, of failing to disclose that she was paid $250,000 to post about EMAX tokens, the crypto as set security being offered by EthereumMax.
The fine includes a penalty of $1 million plus $260,000, representing the amount Kardashian paid plus interest, the SEC said in a statement. She also agreed not to promote any crypto asset securities for three years. “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,” said SEC Chair Gary Gensler in the statement.
Other celebrities have been nabbed in the past by US authorities for illegally promoting cryptocurrencies, including boxer Floyd Mayweather, rap star DJ Khaled, actor Steven Seagal and rapper T.I.
Matt Damon, Tom Brady, Reese Witherspoon, and Gwyneth Paltrow are among those who have used their fame to spread enthusiasm for cryptocurrencies and they have always been open about it and have let their followers know that they are being paid to do so.
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