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Tuesday, December 06, 2022

Kim Kardashian Pays $1.26 Million To US SEC To Settle EthereumMax Allegations

american socialite Kim Kardashian will pay a $1.26 million fine for her role in promoting a cryptocurrency scheme called EthereumMax (eMAX).

The United States Securities and Exchange Commission (SEC) announced charges against Kardashian on October 3, disclosing payments received for her participation in promotions to “promote the security of crypto assets offered and sold by Ethereummax on social media”. without doing

Kardashian has agreed to settle the charges and pay $1.26 million in penalties, waivers and interest and is willing to cooperate with further SEC investigations into the EthereumMax project.

The announcement states that Kardashian failed to disclose the $250,000 payment she received for posting a post promoting EMAX Tokens on her Instagram profile with a link to the project’s website.

The SEC order found Kardashian violated an anti-publicity provision of federal law. This has been the case in the past with other major cryptocurrency securities breaches involving the SEC.

Kardashian neither acknowledged nor denied the SEC’s findings, but agreed to settle the charges., This broke down to $260,000 in damages plus a $1 million fine. Kardashian has also agreed not to promote any crypto assets until 2025.

today @SECGovWe accused Kim Kardashian of illegally evading a crypto security.

This case is a reminder that, while celebrities/influencers support opposition to investments including crypto asset securities, it does not mean that those investment products are right for all investors.

Chairman of the SEC, Gary Gensler also used the order to advise the general public to exercise due diligence when investing in cryptocurrency assets, as well as reminding celebrities and influencers of their obligation to disclose promotional-related payments.

“This case is a reminder that while celebrities or influencers endorse investment opportunities including crypto-asset securities, it does not mean that those investment products are suitable for all investors. We consider investors as potential investors. We encourage you to invest in risks and opportunities in the light of your own financial objectives.”

Kardashian’s legal team also filed a motion to vacate a class action lawsuit targeting the businessman and other American celebrities in August 2022.Ardashian and some other prominent US social media influencers were presented with a class action lawsuit in January 2022 for claiming they misled investors through an Ethereummax social media promotion.

Kardashian posted Instagram stories promoting the project in June 2021, and the likes of boxing great Floyd Mayweather also got swept up in a lawsuit against YouTuber Logan for promoting an Ethereum-based token in preparation for a celebrity boxing match. During the same period Paul.

Fans could buy pay-per-view tickets with the token, which skyrocketed after the promotion from Kardashian and other influencers. The value of EthereumMax subsequently fell significantly, forcing many out of business.

The original indictment that involved Kardashian, Mayweather and eight others claimed that company executives collaborated with celebrity promoters to make misleading statements about the token and their control over most of the token. Steve Gentile and Giovanni Perón were listed as co-founders of the project.

the explanation: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information provided here should not be construed as financial advice or investment recommendation. All investment and commercial activities involve risk and it is the responsibility of each individual to do their due research before making an investment decision.

Investing in crypto assets is not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The offering of services or products is not targeted or accessible to investors in Spain.

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