Kim Kardashian is charged with a $1.26M regulatory fine on Monday. After she promoted the EthereumMax crypto on her Instagram account. Kim Kardashian took a whooping amount of $250,000 to promote EthereumMax in June 2021. But she didn’t disclose the fact that she was paid for this and that it was a paid promotion. Because of this, her followers ended up buying it thinking it was a genuine recommendation.
This is considered one of the biggest promotions but it was connected to cryptocurrency and security so it will be considered illegal.
The United States Security and Exchange Commission released the statement that Kim has agreed to pay a penalty of $1.26M. And won’t be doing any promotional activity related to cryptocurrency in the upcoming 3 years.
This all started when the investors sued Ms. Kardashian along with other celebrities like boxer Floyd Mayweather Jr, basketball player Paul Pierce and EthereumMax's creators in January 2022. The base of this was misleading promotion to sell the cryptocurrency in a pump and dump scheme. These pump and dump schemes are used to increase the prices of the assets before they are sold to investors.
The SEC talked about how this EthereumMax promotion was done where an Instagram post was made about the EMAX token which is the main token of EthereumMax. In this post, a direct link to the EMAX website was provided so that the followers can directly reach the website to buy it.
Gurbir Grewal, director of the SEC's division of enforcement, stated in a prepared statement that "the federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion."
A statement released by Kardashian's lawyer
He gave some light on this topic as he said,
“Ms. Kardashian is satisfied with how the situation with the SEC was settled. From the beginning, Kardashian fully cooperated with the SEC, and she is still ready to do anything she can to help the SEC with this situation. She wanted to put this issue behind her in order to avoid a stretched argument. She is able to do that because of the arrangement she negotiated with the SEC, allowing her to continue pursuing all of her various business operations.”
Investors in cryptocurrencies have seen prices collapse this year, businesses collapse, and fortunes and employment vanish overnight. Some organizations have even been charged by federal officials with operating an unauthorized securities exchange.
The US Congress is paying more and more attention to cryptocurrency. Senators John Boozman, a Republican from Arkansas, and Debbie Stabenow, a Democrat from Michigan, introduced the most recent bipartisan crypto legislation in August. It would give the Commodities Futures Trading Commission control over Bitcoin and Ether regulation.
Consumer activists and other lawmakers have offered bills that would transfer authority to the Securities and Exchange Commission. So there's a possibility that better crypto regulation might happen anytime soon.
What is EthereumMax Crypto?
Because of the name, you might relate it to Ethereum but it has no connection to the top crypto Ethereum. It is a different cryptocurrency that is ranked 3197 on the coinmarketcap. It is currently at the price of ₹0.0000005842 with a fully diluted market cap of ₹1,361,801,313. According to its white paper, EthereumMax is working with a vision of building a robust and scalable ecosystem.
This ecosystem will be built in such a way that it will evolve and scale more with time and will empower the holders of this crypto to grow even more in the world of the digital economy.
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