US SEC finds a way to keep up with the Kardashians

It seems that the Securities and Exchange Commission (SEC) has finally found a way to keep up with the Kardashians.

The US markets regulator announced last week that Kim Kardashian had agreed to pay $1.26 million to settle allegations that she broke US rules by touting a crypto token. The SEC said Kardashian did not disclose that she was paid $250 000 to post on her Instagram account about EMAX tokens, a crypto asset offered by EthereumMax.

That allegation meant she had, in SEC speak, illegally touted a crypto security.

The law requires anyone who touts a security, such as a stock or even some types of cryptocurrencies, to not only say they are getting paid to do so, but also to disclose the amount, the source, and the nature of those payments.
Kardashian settled without admitting or denying the SEC allegations. And she agreed to refrain from touting any additional digital assets for three years.

© 2022 Bloomberg L.P.

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