Cryptotouting Meaning Explained As SEC Charges Kim Kardashian With $1.26 Million Fine
Kim Kardashian is in big trouble for an Instagram post she made about cryptocurrency in June 2021. On Monday, October 3, 2022, the Securities and Exchange Commission charged the Kardashians star with a $1.26 million fine for promoting illegal cryptocurrencies.
Crypto Touting is a typical practice where an individual or an organization convinces others to buy or market specific services or goods by serving them directly. Accordingly, cryptocurrency promotion refers to the promotion of specific cryptocurrencies or digital tokens. According to the SEC charges, Kim Kardashian published a promotional post about crypto resources, EMAX tokens, being offered and sold by EthereumMax.
Kim Kardashian was just indicted by the SEC for illegally promoting crypto security.
He received $250k for an Instagram post to promote a token, without disclosing the paid nature of the post.
It sets a precedent for all celebrities and crypto influencers promoting tokens.
— Miles Deutscher (@milesdeutscher) October 3, 2022
However, he did not discover the payment he received for promoting the aforementioned crypto assets, which violates the anti-promotion provision of the federal securities law. Consequently, the Securities and Exchange Commission charged the 41-year-old media personality with a $1.26 million fine. Since Kim Kardashian allegedly received $250,000 for the promotional post, the sum included $1 million in penalties, as well as $260,000 in interest and repayment. According to the official SEC statement, Kim Kardashian agreed to pay the settlement amount without accepting or denying the charges. Additionally, the SEC has also ordered Kim Kardashian to cooperate while there is reportedly an active investigation into the matter.
This day @SECGovwe charged Kim Kardashian with illegally promoting crypto security.
This case is a reminder that when celebrities/influencers endorse investment opportunities, including crypto asset securities, it does not mean that those investment products are suitable for all investors.
—Gary Gensler (@GaryGensler) October 3, 2022
The SEC Is Charging Kim Kardashian $1.26 Million for Illegally Promoting Crypto Security
The Securities and Exchange Commission announced charges against Kim Kardashian for promoting through social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion. Kim Kardashian has agreed to settle the charges, pay $1.26 million in penalties, repayment and interest, and cooperate with the Commission’s ongoing investigation. The SEC order finds that Kim Kardashian neglected to disclose that she was paid $250,000 to post a post on her Instagram account about EMAX tokens, the crypto asset security featured by EthereumMax. Kardashian’s post contained a link to the EthereumMax site, which provided guidelines for potential investors to purchase EMAX tokens. The SEC order finds that Kim Kardashian violated the government securities act’s anti-advertising provision.
Without admitting or denying the SEC’s findings, Kim Kardashian agreed to pay the $1.26 million mentioned above, incorporating approximately $260,000 in repayment, which addresses her promotional pay, plus pre-trial interest and a $1,000 penalty. ,000 dollars. Kim also agreed not to sell any crypto assets for a considerable period of time (approximately 3 years). The SEC investigation, which continues, is led by Jon A. Daniels, Alison R. Levine, and Pamela Sawhney of the Enforcement Division’s Crypto and Cyber Assets Unit, and Kerri Palen, Lisa Knoop, and Victor Suthammanont of the Bureau province of New York. . The case was handled by Mark R. Sylvester of the Crypto Assets and Cyber Unit and Carolyn Welshhans. The SEC statement urging caution regarding potential illegal celebrity-backed crypto asset contributions can be viewed here. SEC Chairman Gensler reportedly released a video warning investors not to make any investment decisions based solely on the recommendations of a renowned celebrity or influencer.
