Kim Kardashian In SEC’s Crosshairs For Crypto Scam
- Kim Kardashian, has come under the crosshairs of the United States Securities and Exchange Commission (SEC) over the promotion of EthereumMAX (EMAX), a reportedly pump and dump crypto scheme.
- The SEC claims that the billionaire failed to disclose that she was paid to promote the EMAX tokens via her Instagram, which consists of around 330 million followers at the time of writing.
- Kardashian did not agree or disagree with the accusations imposed by the regulatory authority but immediately paid a total sum of $1.26 million.
A number of well-known entities, including celebrities, have entered the crypto industry, and many of them have come out in support of these blockchain-based assets as well. However, one of such famous names, Kim Kardashian, has come under the crosshairs of the United States Securities and Exchange Commission (SEC) for promoting a crypto scam that caused significant losses to investors.
As per the press statement from the financial regulator, Kardashian, known for her ties to famous hip-hop artist Kanye West, now Ye, has been charged “for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.” Interestingly, this token rose to significant heights and then was dump to lower lows.
EthereumMax (EMAX), described as a progressive ERC-20 token built on the secure Ethereum network with a “vision to bridge the gap between the emergence of community-driven tokens and the well-known foundational coins of crypto,” was promoted by Kardashian via her Instagram handle which currently has around 330 million follows!
“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. We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals,”said SEC Chair Gary Gensler.
The SEC claims that Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account wherein she was seen promoting the EMAX cryptocurrency which was offered by EthereumMax without registering with the regulatory authority.
The post promoted by Kardashian contained a link to the official website of the EthereumMax website via which the tokens could be bought. However, following the advertisement from the by the billionaire, the fans rushed to purchase the EMAX tokens which cause the prices to spike. According to the data from CoinMarketCap, the EMAX token reached an all-time high of $0.00000051 and currently, the price of 1 EMAX is around $0.00000000422, which is significantly low from the ATH.
Interestingly, talking about the same, Gensler said that the case “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.”
Additionally, the SEC press statement also added that Kardashian did not agree or disagree with the accusations imposed by the regulatory authority but immediately paid a total sum of $1.26 million which includes approximately $260,000 in disgorgement “which represents her promotional payment, plus prejudgment interest, and a $1,000,000 penalty,” SEC confirmed.