Dishonest influencing on social media to cost Kim Kardashian $1.26 Million

The US Securities and Exchange Commission claims that the reality TV star received $250,000 for endorsing the coin without disclosing that she had been compensated. She also consented to refrain for three years from promoting securities backed by crypto-assets.

Ms. Kardashian is delighted to have addressed this case with the SEC, her attorney told BBC News. The lawyer said that Kardashian has always fully cooperated with the SEC and that she remains ready to do anything she can to assist the SEC in this matter. The settlement she made with the SEC enabled her to move forward with her other business endeavors because she wanted to put this issue behind her and avoid a drawn-out legal battle.

In January, investors brought a lawsuit against Ms. Kardashian, the EthereumMax founders, boxer Floyd Mayweather Jr. and basketball player Paul Pierce. According to the lawsuit, they collaborated on a “pump and dump” strategy to “misleadingly promote and sell” the cryptocurrency to increase its value before making it available to investors. At the time, EthereumMax denied the accusations. Despite its name, EthereumMax has nothing to do with the cryptocurrency Ethereum in terms of either law or commerce. A crypto coin can be made by anyone. You only need a few pounds, a YouTube video, and an intriguing name. This month alone will see the release of a large number of new tokens, each of whose creators promises their coin will be the next big thing.

At first, it seemed like EthereumMax’s considerable investment in landing famous people like Kim Kardashian was paying off. But like many cryptocurrencies, the collapse followed the increase in a remarkably short period. Regulators in the US and UK would have been uneasy about the coin’s advertising even if EthereumMax had retained the value it had gained during the celebrity pump. The crypto market is still mostly unregulated, but Kim Kardashian has now joined the list of personalities and businesses that have faced consequences for endorsing these extremely dangerous goods.

The case, according to Gary Gensler, chairman of the SEC, serves as a “reminder” that a celebrity endorsement does not guarantee that a product is worth buying. The judge added that Ms. Kardashian’s case also serves as a warning to public figures that the law requires them to declare to the public when and how much they are paid to encourage investment in securities.

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Later, he added that celebrity endorsements don’t indicate that an investment product is good for you or even, frankly, that it’s legitimate in a YouTube video about investing in cryptocurrencies. Even if a celebrity endorses something, there are risks and opportunities associated with every investment. When talking about cryptocurrencies, remember that many of them are quite speculative assets. Perhaps you’re wondering if it’s appropriate for you or perhaps if it’s a scam.