The Capital Market Commission of USA (SEC from Securities and Exchange Commission) 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 received a $250.000 payment to post a post featuring EthereumMax's EMAX tokens on her Instagram account.
Kardashian's settlement with the SEC includes a $260.000 payment representing that principal, plus interest, as well as a $1 million penalty.
SEC Chairman Gary Gensler posted a separate message on Twitter about the settlement, stating that the celebrities' posts should not be taken as tips from their audience.
Kardashian, on the other hand, released the following statement about the charges and the settlement through Msperson of:
Ms. Kardashian is happy to report that she has resolved it theme 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.
