Crypto: Kim Kardashian will pay more than 1 million dollars in fines

Kim Kardashian was fined by US regulators for promoting the EthereumMax cryptocurrency, which then collapsed. She made this promotion without declaring that she had been paid. From now on, she is collaborating with the justice system to try to elude a case that has claimed many victims among American investors.

$1.26 million fine in EthereumMax case

Kim Kardashian has been nabbed by the US Financial Police Securities and Exchange Commission. The reality TV star was ordered to pay $1.26 million to settle charges that she violated US law by touting a crypto token, without disclosing that she was paid for it. promote the token.

The SEC said the billionaire was paid $250,000 for posting “posts” on her Instagram account promoting the EMAX token, a crypto-asset offered by EthereumMax that said it was tied to Ether, the second-largest cryptocurrency after bitcoin, but actually has nothing to do with it.

US authorities intend to clean up the jungle of financial influencers. On Monday, October 3, the United States Securities and Exchange Commission (SEC) fined Kim Kardashian $1.3 million for promoting a cryptocurrency on Instagram (Meta).

In June 2021, the world’s most famous influencer extolled the virtues of Ethereum Max to her 331 million followers. “Are you into crypto??? This post is not financial advice, but shares what my friends have told me about the Ethereum Max token,” she wrote on her Instagram account at the time. The message contained a link to the EthereumMax website, which provides users with instructions on how to purchase these digital tokens.

This cryptocurrency has no close or distant connection with Ethereum (the second cryptocurrency after Bitcoin). A week after this advertisement, its price dropped by 85%. Today, the price of this cryptocurrency has fallen by over 99.9%.

SEC Chairman Gary Gensler recalled that “when celebrities or influencers endorse investment opportunities, including crypto assets, it does not mean that those investment products are suitable for all investors.” This $1.26 million fine represents less than 0.1% of Kim Kardashian’s fortune, estimated at $1.8 billion by Forbes magazine.

Other relevant influencers

Boxer Floyd Mayweather and basketball player Paul Pierce have also promoted EthereumMax in the past. In 2018, the former also paid a $614,775 fine for promoting the digital token, without disclosing that he had been paid for the service. The boxer was then banned from promoting any type of crypto investment for three years.

“These communications, whose commercial nature is sometimes hidden, contribute to artificially inflate the value of financial assets”, worries the authority.

In June, investors turned on Tesla boss Elon Musk this time, accusing him of manipulating the price of the cryptocurrency. They demanded $258 billion in fines for him and his companies Tesla and SpaceX, far more than his estimated wealth ($215 billion).

“We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial objectives,” SEC Chairman Gary Gensler said in a statement Monday.

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Crypto: Kim Kardashian will pay more than 1 million dollars in fines

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