Kim Kardashian Hit With $1.26 Million Fine For Scamming Her Followers Into Participating In ‘Pump & Dump’ Crypto Scheme
Kim Kardashian has been charged by the Securities and Exchange Commission for misleading her followers into investing in crypto-currency. They claimed that Kim posted the company as an ad for her followers, but didn’t disclose that it was a paid ad, so it’s considered misleading.
According to the NY POST, The Securities and Exchange Commission announced on Monday that it has charged Kim “for touting on social media a crypto asset security…without disclosing the payment she received for the promotion.”
According to the feds, Kim “failed to disclose” that she was paid $250,000 to post an item to her Instagram prompting EMAX crypto tokens, the digital coin that was offered up for sale by crypto company EthereumMax.
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The SEC said that Kim K “agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate” with the ongoing investigation. Kim paid the penalties “without admitting or denying the SEC’s findings,” according to the agency. She also agreed to refrain from promoting any crypto-asset securities for three years.
“Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens,” the SEC said in a statement. “This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” said SEC Chair Gary Gensler.
“Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.”
Chile… they clocked Kim for scamming her followers real quick! She paid $1.26 million like it was nothing! I hope she learned not to accept anything as an ad because it does have consequences.