Headline RoundupOctober 3rd, 2022

Kim Kardashian Fined $1.26M for Unlawfully Promoting Cryptocurrency

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The Securities and Exchange Commission (SEC) ordered Kim Kardashian to pay $1.26 million for unlawfully promoting a cryptocurrency on her Instagram account.

Kardashian was fined for promoting a cryptocurrency called EthereumMax (EMAX) without disclosing the fact that she'd been paid $250,000 for the advertisement. In the settlement, Kardashian agreed to pay $260,000 in disgorgement (her payment for the promotion plus interest) and a $1 million penalty. She also agreed to not promote any cryptocurrency for the next three years. In announcing the charges, the SEC's chairman said they were "a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors."

Kardashian's net worth is thought to be around $2 billion. Her lawyer told Axios that "Ms. Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter. She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits."

The settlement was covered by sources across the political spectrum, many of which framed it as evidence of the SEC's willingness to crack down on celebrities who endorse cryptocurrencies.

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