Kim Kardashian has been in trouble for one of her Instagram posts. He has been fined over Rs 10 lakh for illegally promoting an illegal crypto investment scheme on his Instagram account.
The US Securities and Exchange Commission (SEC) clarifies that in accordance with federal laws, any celebrity or other person who promotes a crypto asset security must disclose the amount of compensation received in exchange for the promotion. Failure to do so will result in legal action being taken against them.
Alleged due to advertisement of Cryptocurrency
The US SEC revealed that Kim Kardashian failed to disclose the payments made for that post. It is said to have paid him around $250,000 for advertising the cryptocurrency through his social media channel. The filing states that Kardashian is accused of promoting EMAX tokens offered and sold by EthereumMax, without disclosing the payments received for social media promotions.
Kardashian agreed to cooperate with the investigation
To settle the charges, Kardashian has agreed to pay more than Rs 10 lakh, in the form of fines and interest, and cooperate with the commission’s ongoing investigation. It has also agreed not to promote cryptocurrency-related investments for the next three years, the SEC filing said.
The case is a reminder that, while celebrities or influencers have endorsed investment opportunities including crypto-asset securities, it does not mean that those investment products are right for all investors, said SEC Chairman Gary Gensler. Huh. The SEC’s ruling stated that Kardashian violated the anti-touting clause of federal securities laws.
Many American celebrities have been accused
This is not the first time that celebrities have been accused by the US authorities of illegally promoting cryptocurrency. Boxer Floyd Mayweather, rap star DJ Khaled, actor Steven Seagal and rapper T.I. are some of the names that have been arrested for not disclosing payment details to promote crypto on their social platforms.