KimKardashian will pay over a million dollars to settle charges from the SEC. According to the agency, the reality TV star was paid $250,000 to post about the EMAX token but didn't tell anyone.
Federal securities laws have an anti-touting provision. She didn't admit or deny the charges, but she did agree to pay a $1 million penalty and around $260,000 in disgorgement. The reality TV star promised not to promote cryptocurrencies for 3 years.
Gary Gensler, chair of the SEC, said that when celebrities endorse investment opportunities, it doesn't mean that they're right for everyone. We encourage investors to think about their own financial goals when making an investment decision.
The class-action suit took aim at the two athletes for their promotion of the token. The defendants were accused of participating in a pump and dump scheme in which investors promote an asset and sell their interest when the value goes up. According to the suit, the value of the token went up by 622 percent after Floyd and Paul promoted it.
According to a survey, 19 percent of people who heard about an IG story fromKardashian mentioned the criptocurrency invested in. According to the lawsuit, the value of the token nosedived after the post.
This isn't the first time that Kim has been accused of publishing sponsored posts. The Federal Trade Commission suggests that those who are paid to endorse something on social media should include the #Ad hashtag.
In an incredible case of luck, a new show narrated by reality TV star KimKardashian, who is studying to become a lawyer, made its debut on Monday. The system is a true-crime show.
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