Kim Kardashian agrees to pay $1.2 million to settle SEC crypto fees, accused of promoting cryptocurrency
If you’re a billionaire, getting $1.2 million to settle some fees feels like taking a drop of water from the ocean. And that’s what Kim Kardashian decided. The SKIMS founder agreed to pay $1.2 million in a settlement agreement with the Security and Exchange Commission amid accusations that it “illegally promoted cryptocurrency without disclosing that it was being paid for the promotion.”
Neither agreed nor denied, just settled…
Kim Kardashian, who is reported to have a net worth of $1.8 billion, decided to pay $1.2 million in a settlement agreement with the SEC. In addition, the “Keeping Up With The Kardashian” star also agreed not to promote any crypto assets.
On Monday, the agency said Kardashian was pushing the settlement without acknowledging or denying the Securities and Exchange Commission’s findings. She also agreed not to promote any crypto assets for three years. It turns out that Kim did not disclose that she received $250,000 for posting EhtereumMax tokens.
In an Instagram story, Kim wrote: “Are you into CRYPTO??? This is not financial advice but just sharing what my friends told me about the EtherEum MAX token.” Investors sued her, former NBA star Paul Pierce and super boxerloyd Mayweather Jr earlier this year over their EthereumMax promotions, accusing it of “artificially inflating the value of the assets.”
“Federal securities laws are clear that any famous person or other individual promoting crypto-asset security should disclose the nature, source, and amount of compensation they received for the promotion,” said Gurbert Grewal, director of enforcement at the SEC. In a prepared statement.
SEC President Gary Gensler issued a statement: This case is a reminder that when celebrities or influencers support investment opportunities, including crypto-asset securities, this does not mean that these investment products are suitable for all investors.
The huge fine comes after Kim Kardashian used her fame to stir up cryptocurrency EthereumMax, or Emax. However, she got her name in a class action lawsuit in January due to this endorsement.
The declining value of EMAX…
The Securities and Exchange Commission determined that the founder of “SKIMS” violated the anti-promotion clause of theederal Securities Act. However, Kim decided to pay a fine of $1.2 million in a settlement offer: $1 million in fine and $260,000 in cancellation. Per the SEC, this covers the undisclosed amount Kim received along with interest on prejudgments.
For EMAX, the price of the cryptocurrency fell 3.3 to the equivalent of 0.000000004246 cents, according to CoinMarketCap. At the time Kim has promoted EMAX, she has around 225 million followers on Instagram. Emax was launched last year with a trading volume of $16.1 million. It grew after the origin of crypto was promoted by celebrities such as Kardashian and NBA star Paul Pierce. Boxer, Mayweather was a celebrity who promoted this cryptocurrency.
In January 2022, lawyers filed a class action lawsuit against the aforementioned celebrities, alleging that they acted as “famous supporters of EthereumMax, or EMAX, which was being offered to investors as a disruptive new cryptocurrency.” However, the endorsement was a ploy by the creators of EMAX to inflate the price of the token.
The lawsuit also alleged that the cryptocurrency creators, Steve Gentile of Connecticut and Giovanni Peroni oflorida, then sold their holdings of EthereumMax “for a significant profit.” The lawsuit also alleged that Gentile and Perone “marketed EMAX tokens to investors so that they could sell their shares of the flotation.” to make a profit.”
Kardashian’s lawyer said in a statement that she was pleased to have resolved the issue. The statement reads as follows: “Kardashian has fully cooperated with the SEC from the start and remains willing to do everything in her power to assist the SEC in this matter. She has wanted to keep this matter behind her to avoid a protracted dispute.” .
“The agreement it has reached with the SEC allows it to do so so that it can move forward with its many different business endeavors,” the attorney added. Well, Kim is out of it, and why not, if you have that kind of money, anything is possible.