Famous celebrity Kim Kardashian will have to pay $1.26 million to settle securities.
Recently Exchange commission makes allegation on him, she share a crypto token on his instagram account.
Kim Kardashian actually didn’t disclosed that she was paid for this promotion.
Sec said, Kardashian was paid $250,000 to share this post on his instagram account.
According to exchange commission Kardashian has broken US rules and that’s why she will be fined $1.26 million.
This was an EMAX tokens which is offered by EthereumMax.
Kim didn’t posted any comment on it, that she accept or deny this allegation in settling the case.
The SEC has frequently warned that celebrities touting cryptocurrencies that it deems securities need to make clear to investors if they’re paid for the backing.
Similarly in other case 2018, the regulator had fined famous Boxer Floyd Mayweather and a music producer DJ Khaled.
They didn’t disclose payments they received for hyping initial coin offerings.
In the statement SEC Chair person Gary Gensler said, this case is the reminder for those celebrities or influencers who endorse these investment opportunities, including crypto doesn’t mean that those products are right for other investors.
“We encourage investors to think an investment’s potential risks and opportunities in light of their own financial goals.”
Wall Street’s main regulator has long asserted that many virtual tokens are securities and under its jurisdiction.
To determine whether something is a security, the SEC applies a legal test, which comes from a 1946 Supreme Court decision.
Nirmal is a NISM Certified Derivative Trader & the Founder of InvestandEarn.net (Financial Blog). He entered the world of Equity research to explore his interests in financial markets having 5+ Years of Experience in Share Market Trading & Investing. Nirmal frequently writes about Share Market Trading & Investment and publishes his personal view on the market. Drop him a mail at nirmal.jaysval@investandearn.net.
