Kim Kardashian Agrees To Settle $1.26 Million In SEC Charges For Violating ‘Anti-Touting Provision’ On Social Media
03.10.2022 - 17:07
/ etcanada.com
Kim Kardashian has been charged for being unlawful.
On Monday, the Securities and Exchange Commission (SEC) revealed charges against the businesswoman for a social media endorsement of “a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.”
Kardashian reportedly agreed to settle the charges — “pay $1.26 million in penalties, disgorgement and interest, while also cooperating with the SEC’s ongoing investigation,” according to The Hollywood Reporter.
The government agency’s order found that “Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax.” Her sponsored post included a link to the EthereumMax website to further provide instructions on how to purchase EMAX tokens for potential investors.
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In a statement by the SEC, the commission detailed the amounted charges against the Skims mogul.
“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, including approximately $260,000 in disgorgement, which represents her promotional payment, plus prejudgment interest, and a $1,000,000 penalty,” the commission outlined.
“Kardashian also agreed to not promote any crypto asset securities for three years,” they added.
The SEC circled back to a previous statement which urged others to be cautious in regards to celebrities giving their stamp of approval.
“This case is a reminder that, when celebrities or influencers endorse