Home Latest News Why court charge Kim Kardashian to pay $1.26m for promoting crypto coin

Why court charge Kim Kardashian to pay $1.26m for promoting crypto coin

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Kim Kardashian don agree to pay a $1.26m (£1.12m) fine say she advertsie one crypto coin, EthereumMax for her Instagram page.

Di US Securities and Exchange Commission say Kim bin receive $250,000 for advertisement, without disclosing say dem don pay her to do am.

She also gree no promote crypto asset securities for three years.

Her lawyer tell BBC News say: “Kim Kardashian dey happy to settle dia mata wit di SEC.”

Di lawyer say: “Kardashian fully cooperate with di SEC from di very beginning and she remain willing to do whatever she fit do to assist di SEC for dis mata.

“She wan get dis mata behind her to avoid long dragging.

Di agreement she reach wit SEC allow her to do dat so dat she go fit move forward with her many different business mata.”

‘Misleadingly promote’

For January, investors bin sue Kim Kardashian, boxer Floyd Mayweather Jr, basketball player Paul Pierce and di EthereumMax creators.

Di legal action allege say all of dem collabo to “misleadingly promote and sell” di cryptocurrency in one “pump and dump” scheme design to inflate di price before dem sell to investors.

EthereumMax disagree wit di allegations at dat time.

In spite of dia name, EthereumMax no get legal or business connection wit di Ethereum cryptocurrency.

‘Highly one kain’

Gary Gensler, wey be di chairman for SEC, say di case na “reminder” say celebrity endorsement no automatically make any product worth investing in.

“Kim Kardashian case also serve as reminder to celebrities and odas dat di law require dem to disclose to di public wen and how much payment dem receive to promote investing in securities,” e tok.

Later, for one YouTube video about crypto investment, e add: “Celebrity endorsements… no mean say investment product dey right for you or even say e dey legitimate.

“Even if any celebrity endorsement dey genuine, each investment get im own risk and opportunities.

“Wen e come to crypto, remember many of dis na highly speculative assets.

“You fit dey wonder if e dey right for you or even if e fit be scam.”


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