SEC accuses Kim Kardashian of “illegal promotion” of cryptocurrency EthereumMax

Today, the US Securities and Exchange Commission (SEC) announced that Kim Kardashian has been indicted for promoting what the commission called “crypto-asset security.” The asset in question is the token of EthereumMax (EMAX), a reality TV star and influencer that went public last year.

Other celebrities who participated in the promotion of EMAX, a EthereumThe token that sparked publicity last summer included super boxer Floyd Mayweather Jr. – Who famously appeared in a T-shirt bearing the EMAX logo in the first stage Bitcoin Extremes Conference in Miami in June 2021 – and former NBA star Paul Pierce.

According to a Securities and Exchange Commission notice, Kardashian allegedly failed to disclose a $250,000 payment she received for posting an Instagram post that instructed potential investors to purchase EMAX tokens.

“This case is a reminder that when celebrities or influencers endorse investment opportunities, including securities in crypto assets, this does not mean that these investment products are suitable for all investors,” SEC Chairman Gary Gensler said in a statement. “We encourage investors to consider the potential risks and opportunities of investing in light of their financial goals.”

The organization added that Kardashian agreed to pay $1.26 million to settle the fees. It will also cooperate with an ongoing investigation and agree not to market crypto securities for three years.

“Ms. Kardashian’s case serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much money is being paid to encourage investments in securities,” Gensler added.

The SEC said Kardashian neither acknowledged nor denied the regulator’s findings.

Angry investors Sue Kardashian

Kardashian, Mayweather and Pierce were sued earlier this year over their promotion of EthereumMax, accusing celebrity investors of colluding with EMAX founders Steve Gentile and Giovanni Perone to raise the price of the token to attract buyers and then dump it, leaving its holders with a bag of coins that don’t. its value.

EMAX price peaked at $0.000000597636 last May after the token increased 1,420% in just one week, but then dropped dramatically. The asset is trading at $0.000000004490 at the time of writing, or nearly 100% of its all-time high, per CoinGecko.

But Kardashian still resisted the lawsuit – in August, her lawyers tried to dismiss the complaint against Gentile.

In an application filed in a US District Court in California, the celebrity’s defense said that token buyers relied on only two of her Instagram posts — and in those posts, the celebrities did not provide investment advice.

Kardashian’s lawyer also insisted that investors did not specify that they viewed Kardashian’s posts in advance or that they bought EMAX tokens because of the posts.

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