Kim Kardashian has been subjected to a crypto clampdown. The Securities and Exchange Commission (SEC) officially confirmed on October 3rd that the empress of influencer marketing influenced the EthereumMax (EMAX) token, which Kardashian highlighted on her Instagram in June 2021. She has agreed to compensate $1.26 million and refrain from promoting cryptocurrency bonds over the next three years.
The agreement demonstrates that the SEC is prepared, inclined, and capable of investigating celebrity cryptocurrency sponsors. Many of them made a significant amount of money by publicizing dubious cryptocurrency strategies that quickly failed, having left shareholders (often their own fans) with empty wallets.
The Crackdown Overview
Gary Gensler, director of the Securities and Exchange Commission, used social networking sites to announce the resolution, including a video of him advising people about famous celebrities’ sponsorships of investments.
That twitter post could also be interpreted as a caution to the famous people themselves. Gensler has made no indication of his interest in joining the unregulated and turbulent universe of cryptocurrency investment portfolios.
The SEC has already examined some of the top social media platforms and individuals involved. While Kardashian has become one of the first, and certainly the most visible, celebrities to be chastised for publicizing cryptocurrency to her fans, it’s unlikely she’ll be the only one.
She may not have been the last public figure charged by the SEC for championing EthereumMax, which also has mixed martial artist Floyd Mayweather Jr. and basketball player Paul Pierce as endorsers. The SEC said it’s independent inquiry into EthereumMax is “currently underway.”
Why Was Kim Kardashian Guilty Here?
Kardashian’s Instagram story was labeled as an advertisement with the hashtag “#ad.” That is not enough for the SEC, which stated in a publication that the blog lacked all of the data required by state law for protection sponsorships, including the origin and payment of compensation.
According to the committee, Kardashian was rewarded $250,000 for her story. The $250,000 agreement contains interest and a $1 million punishment. It’s a pittance compared to her average net worth of nearly $2 billion.
Kardashian is unlikely to encounter it’s lacking. But there’s also an emblematic valuation: it demonstrates that the SEC isn’t frightened to go after some of the biggest global celebs.
Kim Kim Kardashian’s Statement
“Ms. Kardashian is delighted to have remedied this issue with the SEC,” Kardashian’s defense attorney, Patrick Gibbs, said in an assertion. He also stated that Kardashian has been cooperating with the SEC and will proceed to do so.
“She planned to bring this issue behind her in order to avoid a long legal battle.” The settlement she attained with the SEC enables her to do so, allowing her to continue with her numerous entrepreneurial activities.”
Final Words
When Kardashian, Mayweather Jr., and Pierce endorsed EthereumMax, its value skyrocketed. It immediately fell after that. A class intervention civil suit criticizes the three for conspiring with EthereumMax to massively increase the token’s significance, also known as a “pump and dump.”
The virtual currencies universe has been extremely vulnerable to all of these, with many celebs working to promote tokens to their fans, only to have the value of those tokens collapse shortly afterward.
Ben McKenzie, an action star who has become an outspoken opponent of the cryptocurrency industry — specifically the “Hollywoodization” of it — decided to write about Kardashian’s EMAX campaign for Slate last October as an instance of celebs exploiting their fan base by actively supporting risky crypto investment opportunities.
FAQs
Kim Kardashian has been subjected to a crypto clampdown.
She has agreed to compensate $1.26 million and refrain from promoting cryptocurrency bonds over the next three years.
The agreement demonstrates that the SEC is prepared, inclined, and capable of investigating celebrity cryptocurrency sponsors.
Gary Gensler, director of the Securities and Exchange Commission, used social networking sites to announce the resolution.
A class intervention civil suit criticizes the three for conspiring with EthereumMax to massively increase the token’s significance, also known as a “pump and dump.”
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