Kim Kardashian was barred from endorsing cryptocurrency

Many influencers and celebrities are endorsing cryptocurrency on their social networking channels. The rationale is they get a huge amount as a return package for advertising and uploading it to their accounts. Yet lately, the federal security laws came to know that some celebs are violating terms and not revealing the relationship of marketing the products.

One of the personalities who hasn't discussed their relationship with the crypto firm on why they're promoting the product happens to be Kim Kardashian. She endorsed Emax tokens on her social media and obtained thousands of dollars in reimbursement. However, it came to an end when federal security laws discovered about her breaking the anti-touting provision.

Moreover, EthereumMax paid $250,000 to Kim Kardashian for publicizing the cryptocurrency on her Instagram. She posted stories, shared insight for future stockholders, and provided the link in her stories for more insights and information regarding Emax tokens.

As a direct consequence, the Securities and Exchange Commission (SEC) charged Kardashian for ballyhooing the cryptocurrency on her Instagram account without following the proper guidelines. She also paid a fine of around 1.26 million dollars, which enclosed the money from paid promotions and prejudgment interest, making it just about 260,000 dollars due to disgorgement and a 1,000,000 dollar drawback, in addition to compensating for the crypto's illegal endorsement.

In a recent report submitted by the laws (SEC), it is provided that Kardashian is the only personality who had to pay a fine for commercial advertisement without any disclosure. As part of the reimbursement in 2020, the SEC also demanded that Steven Seagal pay substantial charges. In a case very similar to Ms. Kardashian, he had to pay $300,000, and the authorities restricted him from advertising cryptocurrencies for 3 years.

Several celebrities have frequently promoted Cryptocurrencies at the cost of their reputation to spread the word. They use a different strategy to spread growing crypto investments according to the rules and regulations. Reese Witherspoon, Gwyneth Paltrow, Matt Damon, and Tom Brady are some other well-known personalities who have utilized the medium of television to spread gusto among investors through clever advertisements.

Gary Gensler, Chair of the SEC, insisted on the matter by warning celebrities and influencers to be more cautious when promoting cryptocurrency assets. This case serves as a caution to all individuals to see that they are not illegally going against the law by not disclosing their relationship to the general public. They are expected to be more forthcoming about their investments and the compensation they receive for promotions.

The SEC's Director of Enforcement, Gurbir S. Grewal, stated that those promoting the asset must disclose the nature of their investment. It will earn the trust of additional shareholders, and they have every right to be aware of whether or not the publicity is impartial.

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by Arooj Ahmed via Digital Information World