Social media sensation and entrepreneur Kim Kardashian has found herself in some serious hot water.
Kardashian was charged in a Crypto “pump and dump” scheme by the SEC.
She has settled the case, but at a pretty hefty hit to her bank account.
Guilty
Kardashian was hit for her role in the EthereumMax pump-and-dump scheme.
She settled and agreed to pay $1.26 million in penalties, and the SEC said that she has been cooperating with the authorities since the investigation started.
However, she paid the fine “without admitting or denying the SEC’s findings.”
Kardashian had sent out a tweet recommending the E-max coin to her followers.
Her spokesperson stated, “Ms. Kardashian is pleased to have resolved this matter with the SEC.
“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.”
Regarding the case, the SEC stated, “Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors.
“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.
“Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.”
While it is a nice hit, it likely pales in comparison to what Kardashian was paid to endorse the coin.
Source: New York Post
