Kim Kardashian pays $1.26 million for a cryptocurrency ‘pump and dump’

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Last Updated on October 4, 2022 by Bitfinsider

The US Securities and Exchange Commission said the reality TV star was paid $250,000 to promote cryptocurrency without disclosing the payment.

She also agreed to refrain from promoting crypto asset securities for the next three years.

“Ms Kardashian is pleased to have resolved this matter with the SEC,” her lawyer told BBC News.

According to the lawyer: “Kardashian has fully cooperated with the SEC since the beginning, and she continues to be willing to do whatever she can to help the SEC in this matter.

“She wanted to put this matter behind her in order to avoid a long legal battle.

“The agreement she reached with the SEC allows her to do so, allowing her to move forward with her numerous business ventures.”

In January, investors sued Ms Kardashian, boxer Floyd Mayweather Jr, basketball player Paul Pierce, and EthereumMax’s creators.

The lawsuit claimed they conspired to “misleadingly promote and sell” the cryptocurrency in a “pump and dump” scheme intended to inflate the price before selling to investors.

EthereumMax spent a lot of money on celebrities like Kim Kardashian, and it seemed to be working out at first.

However, as with many other cryptocurrencies, the fall was as dramatic as the rise.

Even if EthereumMax had retained its value following the celebrity pump, regulators in both the US and the UK were extremely concerned about the coin’s marketing.

The cryptocurrency industry is still largely unregulated, but Kim Kardashian joins a growing list of people and businesses who have been punished for promoting these highly risky products.

The SEC’s chairman, Gary Gensler, called the case a “reminder” that celebrity endorsement did not necessarily make a product worth investing in.

“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 securities investing,” he said.

Later, in a YouTube video about cryptocurrency investing, he added, “Celebrity endorsements… don’t mean that an investment product is right for you or, frankly, that it’s legitimate.”

“Even if a celebrity endorsement is genuine, each investment has its own set of risks and rewards.”

“When it comes to cryptocurrency, keep in mind that many of these are highly speculative assets.”

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