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fines and compensationKim Kardashian fined millions for cryptocurrency
Hidden earnings when promoting a digital currency are now costing the reality star dearly. The US Securities and Exchange Commission has now fined her $ 1.26 million.
The reality star has received a million dollar fine from the US Securities and Exchange Commission.
REUTERS
The 41-year-old has now been fined the equivalent of $1.25 million for illegally promoting a cryptocurrency on Instagram.
AFP
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Kim Kardashian promoted a cryptocurrency on Instagram.
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Since she did not disclose that she received $ 250,000 for it, the US Securities and Exchange Commission has now fined her $ 1.26 million.
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For years, the SEC has warned investors regarding dubious investment tips from celebrities with a high reach on the Internet.
Kim Kardashian pays millions in fine for illegally promoting a cryptocurrency. As the US financial market regulator SEC announced on Monday, the 41-year-old agreed to a payment of 1.26 million dollars (around 1.25 million francs). The successful businesswoman advertised the EMAX cryptocurrency offered on the EthereumMax website on her Instagram page without making public that she received $250,000 for it.
The $1.26 million payment includes a $1 million penalty and a refund of the $250,000 payment plus interest, the agency said. The 41-year-old will also refrain from cryptocurrencies for three years.
The SEC has been warning of dubious investment tips for years
“This case is a reminder that when celebrities or influencers endorse investment opportunities including cryptocurrencies, that doesn’t mean those investment products are right for all investors,” said SEC Chairman Gary Gensler. “We encourage investors to consider the potential risks and rewards of investing in light of their own financial goals.”
In addition, the case is a reminder that celebrities have to make it public if they are paid to advertise financial products, the Financial Markets Authority said. The SEC warns investors investor For years, he has been exposed to dubious investment tips from celebrities with a wide reach on the Internet – especially in the case of highly speculative and often laxly regulated crypto assets.
DJ Khaled and Steven Seagal have also had trouble
Kardashian wasn’t the first celebrity to be targeted by the SEC for deceptively cryptocurrencies. Before her, boxer Floyd Mayweather, rapper DJ Khaled, and actor Steven Seagal, among others, got into trouble for promoting cryptocurrencies without making their pay public.
Kardashian rose to fame with the reality TV show Keeping Up With the Kardashians. In recent years she has built up a veritable company empire, with clothing and cosmetics brands as flagships of her portfolio. In September, the 41-year-old also announced the founding of an investment company called SKKY Partners. The US financial magazine “Forbes” estimates her fortune at 1.8 billion dollars.
(AFP/as)
