Why is Kim Kardashian paying $1.26 million to Securities and Exchange Commission? Find details here.
by Ana Walia | Mon, 03 Oct 2022 20:30:29 GMT
Kim Kardashian will pay a price for unlawfully touting cryptocurrency. Image Source: Variety

Kim Kardashian will pay a price for unlawfully touting cryptocurrency.

The Securities and Exchange Commission claimed that reality TV star Kim Kardashian improperly promoted a cryptocurrency asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion. Kim reportedly agreed to pay $1.26 million as part of a settlement agreement with the SEC.

Kim Kardashian has agreed to settle the accusations with the Securities and Exchange Commission and to assist in the SEC's ongoing investigation into the subject after being accused of failing to disclose that she received $250,000 to promote the cryptocurrency.

In a statement to Hollywood Life, Kim Kardashian's attorney said that Kim Kardashian is happy that the problem with the Securities and Exchange Commission has been addressed. She has worked closely with them from the beginning and has remained ready to do whatever she can to help them with the case. According to the statement, the beauty mogul wanted to put this issue behind her to avoid a drawn-out legal battle, and her settlement with the Securities and Exchange Commission enables her to do so so that she can continue with her numerous business ventures.

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The head of the Securities and Exchange Commission said that this case should serve as a warning to the public that just because a famous person or other powerful person suggests a certain investment opportunity, such as crypto-asset securities, doesn't indicate that it is appropriate for all investors. The Chairman's message continued by advising investors to consider their financial resources while assessing the possible risks and opportunities of investment. The Chairman of the Securities and Exchange Commission further stated in a statement that when promoting security assets, public personalities must disclose their compensation.

The penalty relates to an EthereumMax, or EMAX, the cryptocurrency that was promoted to investors as a cutting-edge new cryptocurrency.A class-action lawsuit was brought in January against Kim Kardashian and other well-known figures who used their prominence to promote cryptocurrency. Kim Kardashian allegedly failed to declare that she received $250,000 in exchange for writing about EMAX tokens on her Instagram account, according to the Securities and Exchange Commission. To guide the people on how to purchase EMAX tokens, the post where Kim Kardashian advertised the cryptocurrency, also had a link to the website of EthereumMax, which contained the information.

The federal securities laws are clear that any famous people or other people who advertise a crypto asset security must reveal the kind, source, and amount of money they received in return for the advancement, according to Gurbir Grewal, director of the Securities and Exchange Commission's division of enforcement.

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Kim's $1.26 million agreement consists of a $1 million fine and a disgorgement of $260,000, which is equal to the amount she was paid for the advertisement. She also agreed to refrain for three years from supporting any other cryptocurrency security, according to the SEC.

The founder of SKIMS recently posted a series of photos from her childhood and throwback videos of her late father Robert Kardashian on social media in remembrance of him on the 19th anniversary of his passing. She also mentioned that she misses coming home to the handwritten notes that she could hardly read because of his left-handed handwriting and that she could always feel him close by. Kim Kardashian revealed in another piece that her late father used to cherish the Father's Day cards she sent him. Just two months after his initial diagnosis, in 2003, Robert passed away from esophageal cancer. He was 59.

The 41-year-old co-creator of SKIMS and Dolce & Gabbana launched the "Ciao, Kim" collection at their Milan Fashion Week show recently. She also posted a photo of her children on social media with the message "Amore."