{"id":23563,"date":"2022-10-03T12:33:13","date_gmt":"2022-10-03T16:33:13","guid":{"rendered":"http:\/\/worldjusticenews.com\/news\/?p=23563"},"modified":"2022-10-03T12:33:13","modified_gmt":"2022-10-03T16:33:13","slug":"kim-kardashian-pays-1-26m-over-cryptocurrency-pump-and-dump","status":"publish","type":"post","link":"https:\/\/worldjusticenews.com\/news\/2022\/10\/03\/kim-kardashian-pays-1-26m-over-cryptocurrency-pump-and-dump\/","title":{"rendered":"Kim Kardashian pays $1.26m over cryptocurrency ‘pump and dump’"},"content":{"rendered":"
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Kim Kardashian has agreed to pay a $1.26m (\u00a31.12m) fine for advertising EthereumMax on her Instagram page.<\/b><\/p>\n<\/div>\n<\/div>\n

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The US Securities and Exchange Commission said the reality TV star had received $250,000 for advertising the cryptocurrency, without disclosing she had been paid to do so.<\/p>\n<\/div>\n<\/div>\n

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She also agreed not to promote crypto asset securities for three years.<\/p>\n<\/div>\n<\/div>\n

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Her lawyer told BBC News: “Ms Kardashian is pleased to have resolved this matter with the SEC.”<\/p>\n<\/div>\n<\/div>\n

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The lawyer said: “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.<\/p>\n<\/div>\n<\/div>\n

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“She wanted to get this matter behind her to avoid a protracted dispute.<\/p>\n<\/div>\n<\/div>\n

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“The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits.”<\/p>\n<\/div>\n<\/div>\n

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‘Misleadingly promote’<\/span><\/h2>\n<\/div>\n
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Ms Kardashian, boxer Floyd Mayweather Jr, basketball player Paul Pierce and EthereumMax’s creators were\u00a0sued by investors in January<\/a>.<\/p>\n<\/div>\n<\/div>\n

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The legal action alleged they had collaborated to “misleadingly promote and sell” the cryptocurrency in a “pump and dump” scheme designed to inflate the price before selling to investors.<\/p>\n<\/div>\n<\/div>\n

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EthereumMax disputed the allegations at the time.<\/p>\n<\/div>\n<\/div>\n

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In spite of its name, EthereumMax has no legal or business connection with the Ethereum cryptocurrency.<\/p>\n

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‘Highly speculative’<\/span><\/h2>\n<\/div>\n
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Gary Gensler, who chairs the SEC, called the case a “reminder” celebrity endorsement did not necessarily make a product worth investing in.<\/p>\n<\/div>\n<\/div>\n

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“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,” he said.<\/p>\n<\/div>\n<\/div>\n

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Later, in a YouTube video about crypto investment, he added: “Celebrity endorsements… don’t mean that an investment product is right for you or even, frankly, that it’s legitimate.<\/p>\n<\/div>\n<\/div>\n

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“Even if a celebrity endorsement is genuine, each investment has its own risk and opportunities.<\/p>\n<\/div>\n<\/div>\n

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“When it comes to crypto, remember many of these are highly speculative assets.<\/p>\n<\/div>\n<\/div>\n

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“You may be wondering if it’s right for you or even if it might be a scam.”<\/p>\n