KIm Kardashian fined $1.26m by SEC

Kim Kardashian
Kim Kardashian

Kim Kardashian has been fined £1.2m ($1.26m) by the US Securities and Exchange Commission for advertising EthereumMax on her Instagram page.

According to US Securities and Exchange Commission said the reality TV star had received £250, 000 for advertising the cryptocurrency without disclosing she has been paid to do so. She agreed to pay the fine and agreed not to promote crypto asset securities for three years.

According to her lawyer “Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter. The agreement she reached with the SEC allows her to get this matter behind her so that she can move forward with her many different business pursuits.”

Ms. Kardashian, boxer Floyd Mayweather Jr, Basketball player Paul Pierce, and EthereumMax’s creators were sued by investors in January.

The legal action alleged they had collaborated to “misleadingly promote and sell the cryptocurrency in a pump and dump” scheme designed to inflate the price before selling to investors. EthereumMax who disputed the allegations at the time has no legal or business connection with the Ethereum cryptocurrency.

Gary Gensler, who chairs the SEC, called the case a “reminder” celebrity endorsement did not necessarily make a product worth investing in.

“Ms. Kardashian’s case, the law requires them to disclose to the public when and how much they are paid to promote investing in securities,” he said.