SEC accused Kim Kardashian of illegal advertising Ethereummax
The US Securities and Exchange Commission (SEC) was accused of a fashion model and actress Kim Kardashian of illegal advertising altcoin Ethereummax (EMAX).
According to the agency, the celebrity did not report that she received $ 250,000 for Instagram publication about security tokens offered by Ethereummax. Kardashian post contained a link to the project website where potential investors received instructions for buying EMAX.
Thus, the star violated the federal law on securities regarding the ban on advertising without disclosing the character, source and the amount of compensation received in exchange for promotion.
“Investors have the right to know if an advertisement for objective security is,” said.
Kardashian will pay $ 1.26 million in the form of fines, interest and reimbursement of illegally obtained profit. She also agreed not to advertise any digital assets for three years.
“This case recalls that investment solutions promoted by celebrities are not necessarily suitable for all investors,” Gensler said.
About Altcoin Ethereummax became widely known in the spring of 2021. On May 26, the advertising post Miner service stops on Twitter was published by the ex-star of the NBA Paul Pierce. Within a few days, the price of EMAX reached the maximum, after which it fell by more than 80% in 11 days.
Recall that in January 2022, a lawsuit against Kardashian, boxer Floyd Mayweather and another eight people came to the court of the Central District of California. Investors accused them of conspiracy with the leaders of the project by Steve Gentile and Giovanni Peron with the aim of misleading regarding control over most tokens.
In August, lawyers tried to challenge the collective lawsuit against Kardashian for promoting Ethereummax. The defense insisted on the unproven fact that it was her advertising posts on Instagram that prompted investors to invest in token.
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