The US Securities and Exchange Commission (SEC) accuses Kim Kardashian of an "illegal advertisement" of a "crypto security", he said the Monday morning service.
The SEC says Kardashian violated regulations when she promoted a “crypto security offered and sold by EthereumMax” without the necessary disclosure that she was paid to promote it.
Kardashian has already agreed to settle the case, with a fine of $1,26 million, and to assist the SEC in its ongoing investigation.
The agency clarified that Kardashian should have disclosed that she had received one payment $250.000 to post a post of EthereumMax's EMAX tokens on her Instagram account.
The settlement reached with the SEC by Kardashian includes a $260.000 payment representing that principal, plus interest, as well as $1 million related to fine.
SEC Chairman Gary Gensler separately released one message on Twitter regarding the settlement, they state that celebrity posts should not be taken as advice by their audience.
Kardashian, on the other hand, released the following statement about the charges and the settlement through her rep:
Ms. Kardashian is pleased to report that she has resolved the matter with the SEC. Kardashian has fully cooperated with the SEC from the beginning and remains willing to do everything she can to assist the SEC in this matter. She wants to put this issue behind her and avoid a prolonged argument. The deal it reached with the SEC allows it to do so in a way that allows it to move forward with its many different business obligations.
