Posted Oct 3, 2022 2:47 PMUpdated Oct 3, 2022, 3:35 PM
Reality TV was called back to reality. Kim Kardashian has been pinned by the US market regulator, the Securities and Exchange Commission (SEC). She will pay a fine of $1.26 million for promoting an obscure crypto, EthereumMax without disclosing that she was paid $250,000 for this advertisement. Kim Kardashian pledges not to promote crypto investments for 3 years. She cannot express herself in the press and on social networks on cryptos.
On June 13, 2021, Kim Kardashian had caught the attention of her 228 million subscribers on Instagram (they are now 331 million). “Are you interested in cryptos? she asked, encouraging them to join “the EthereumMax community”. This crypto had no near or far connection with Ethereum. A week after this planetary publicity its price had plunged by 85%. It is now worth $0.000000004301, a 99.9% drop since its peak on May 30, 2021.
SEC Chairman Gary Gensler reiterated that “when celebrities or influencers endorse investment opportunities, including crypto assets, it does not mean that those investment products are suitable for all investors.” This $1.26 million fine represents less than 0.1% of Kim Kardashian’s fortune, estimated at $1.8 billion by Forbes magazine.
Ruined individuals
By settling this case and cooperating with justice, Kim Kardashian hopes to thwart the complaint filed at the beginning of the year by individuals who consider themselves ruined and are asking for damages. In September, the reality TV and social media star teamed up with a former American fund Carlyle to launch his private equity firm, SKKY Partners. Will she invest in the crypto sector?
Several precedents
Boxer Floyd Mayweather and basketball player Paul Pierce had also promoted EthereumMax. In 2018, the former had paid a fine of $614,775 for promoting a digital token without disclosing that he had been paid for this service. The boxer was banned from promoting any type of placements for three years.
In June, investors turned against Tesla boss Elon Musk. He was accused of manipulating the price of the crypto dogecoin. They demanded from him and his companies, Tesla and SpaceX, the modest sum of 258 billion dollars, more than his fortune (215 billion).
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