According to a press release on October 3, the SEC accused Kim Kardashian for unlawfully advertising EthereumMax's EMAX tokens on her Instagram account.
Celebrity Kim Kardashian for unlawfully advertising EthereumMax's crypto asset security.
According to the SEC ruling, Kim Kardashian failed to disclose that she was paid $250,000 to post regarding EMAX tokens on her Instagram account.
SEC Charges Kim Kardashian
According to a press release on October 3, the Securities and Exchange Commission accused Kim Kardashian for unlawfully advertising EthereumMax's EMAX tokens on her Instagram account. The SEC accuses Kim Kardashian of failing to disclose the $250,000 she received to publish a post on her Instagram account.
The post included a link to the EthereumMax website, which includes purchasing instructions for EMAX tokens for interested investors.
SEC Chair Gary Gensler said:
“This case serves as a warning that just because celebrities or influencers support investment opportunities, including crypto-asset securities, does not guarantee that those products are suitable for all investors. We advise investors to consider the potential risks and opportunities of an investment in light of their personal financial objectives.”
Grewal further stated that people should be aware of whether the promotion is funded or unbiased. This, he believes, will assist them in making a more informed investment decision. Regardless, Kardashian overlooked this critical piece of information.
SEC previously accused Ian Balina for advertising SPRK tokens in 2018
Speaking on the matter, SEC Chair Gary Gensler backed Grewal's remarks. Gensler mentioned that celebrities should take a lesson from Kim Kardashian's case. According to him, this lesson is the fact that there are rules requiring them to disclose how much they are paid for advertising a security.
On a recent edition of CNBC Squawk Box, hosts Andrew Sorkin and Rebecca Quick discussed the matter. According to Sorkin, the SEC's charges are still a bit murky. This is especially true given that Kardashian said that the post was an advertisement. As a result, they want to get Chair Gensler on the show to give terra classic more insight.
This is not the first time a prominent figure has been charged with cryptocurrency marketing. The SEC filed a lawsuit against famed cryptocurrency investor Ian Balina last month. The lawsuit claims that the media celebrity breached securities regulations in his marketing of SPRK tokens in 2018.
Read also: Binance Confirms Terra Classic Burning Over $5 Billion, Price Increases
