Reality TV star and social media influencer Kim Kardashian is about to write a monster check.
Kardashian made a post on Instagram touting EMAX.
While she regularly generates six and seven-figure paydays for her posts, this one will cost her $1.26 million.
The asset she touted was linked to a pump-and-dump scheme.
Kardashian was paid for her post, and now she is going to pay.
To her credit, she has cooperated with the SEC and accepted the charges filed against her.
She is still cooperating with the SEC, hence only the fine.
After the deal was made 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.”
Kardashian was reportedly paid $250,000 for the post.
What is unclear is if she had assets tied up in the crypto that allowed her to benefit from the pump-and-dump scheme.
John Jasnoch, an attorney for Scott & Scott, the firm handling the class-action suit, stated, “We see the SEC order as validation of the claims in the EthereumMax litigation, particularly those against Defendant Kardashian.
“Promoters who mislead investors should be held accountable.”
Floyd Mayweather is also part of the suit, but there were no details of any settlement with the former boxer.
Former Boston Celtics player Paul Pierce was also named.
Source: New York Post