Kim Kardashian has agreed to pay the Securities and Exchange Commission $1.26 million as compensation for failing to disclose that she received payment to promote a cryptocurrency.
The SEC announced on Monday that Kardashian had consented to cooperate with its continuing inquiry and paid the penalties.
Kardashian attracted the attention of the SEC after she neglected to declare that she had been paid $250,000 to write a post on EXMX tokens, a cryptocurrency asset from EthereaumMax, in June 2021.
The federal securities rules are clear that any celebrity or other individual who promotes a crypto asset security must disclose the character, source, and amount of money they received in exchange for the promotion, claims Gurbir Grewal, director of the SEC’s division of enforcement.
Others were more open-minded.
Also, it is a as long as influencers and celebrities who promote crypto products you’ve never heard of have received payment for doing so.
The SEC claims that Kardashian violated the anti-touting provision of the federal securities laws. Kardashian pleaded guilty to the accusation but did not accept or reject the SEC’s conclusions.
Ms. Kardashian is glad that the case has been handled with the SEC, according to a statement from her attorney. Kardashian has always worked with the SEC in a completely cooperative manner, and she is still willing to do anything she can to assist the SEC in this circumstance. She didn’t want this fight to drag on, so she wanted to put it behind her. She is able to do that because of the arrangement she negotiated with the SEC, allowing her to continue with her numerous business endeavours.
What about Kardashian’s ambition to practise law? She passed California’s “baby bar,” or First-Year Law Students’ Examination, on her fourth attempt late last year, as fans of her show will know. How may an SEC charge affect her prospective legal career?
Defense lawyer Duncan Levin of Levin & Associates, PLLC told the New York Post that it is a matter that would unquestionably come up during her admission to the bar. He declared, This is a very severe matter. This is a violation of the securities laws, and candidates for the bar are assessed based on their moral character.
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