Kim Kardashian has agreed to pay $1.26 million to settle charges after an IG ad she posted confused many people.
Kim Kardashian’s $1.26 Million Loss
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Kardashian put her name behind a crypto company but did not share that she was paid to promote the company, making her ads and opinions unreliable!
The Securities and Exchange Commission said under the settlement, they found that he continued the promotion, without “acknowledging or denying the SEC’s findings.”
In addition to having to pay a very high consideration, Kardashian lost any possible future work with the crypto company. For the next three years, the reality star is not allowed to promote any crypto asset company.
Kim Kardashian Original Deals
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This mother of four is less fortunate in this deal. He was initially paid $250,000 to post on his Instagram account about the EMAX token, an asset offered by EthereumMax. His post is linked to the EthereumMax website.
There, potential investors are given instructions on how to purchase EMAX tokens. Obviously, this deal backfired on the reality star, and having to pay over a million dollars for a pint of a million he made would burn even the richest man.
Influencer is a great choice for the promotion, he has over 3 million followers but he’s not going through the right channels to pocket those coins.
Kim Kardashian Is Being Made An Example
Instagram | Kim Kardashian
The 41-year-old had no chance to escape this judgment and never did, the SEC wanted to make an example of Kardashian, a subtle warning that even famous people cannot escape securities fraud.
“This case is a reminder that, when a celebrity or influencer endorses an investment opportunity, including crypto-asset securities, this does not mean that the investment product is suitable for all investors,” said SEC chairman Gary Gensler.
Gensler also went on to say specifically, “Ms. The Kardashian case is also a reminder to celebrities and others that the law requires them to disclose when and how much they are paid to promote investments in securities.
Kim Kardashian Violated
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The SEC also stated that the influence violated the “anti-hype provisions of the federal securities laws.” The $1.26 million judgment is broken as such, according to Diversity“Approximately $260,000 in insufficient funds (which represents his promotional payout plus prejudgment interest) and a $1 million penalty.”
The SEC continues to claim that the investigation is ongoing. For future investors, the SEC warns against “celebrity-backed crypto asset offerings that may be illegal.” They encourage potential investors,
“to be wary of investment opportunities that sound too good to be true. We encourage investors to research potential investments rather than relying on paid endorsements from artists, sports figures or other icons.”
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Source: thtrangdai.edu.vn/en/
