Crypto Touting Meaning Explained As SEC Fines Kim Kardashian $1.26 Million

Kim Kardashian ran into big trouble with an Instagram post about cryptocurrency in June 2021. On Monday, October 3, 2022, the Securities and Exchange Commission fined The Kardashians star $1.26 million for illegal cryptocurrency propaganda.

Cryptotouring is the act of persuading an individual or group to take care of a specific service or product directly. So, crypto propaganda means promoting a specific cryptocurrency or digital token. As the SEC claim suggests, Kim Kardashian has published a promotional post about the EMAX token, a cryptographic resource offered and sold by EthereumMax.

Nevertheless, she did not disclose what she was paid for promoting the aforementioned crypto asset. This violates the anti-propaganda provisions of the federal securities laws. As a result, the Securities and Exchange Commission fined the 41-year-old journalist $1.26 million. Since Kim Kardashian is estimated to have received $250,000 for her promotional posts, the total included a $1 million fine and $260,000 in interest and damages. According to the SEC’s official statement, Kim Kardashian agreed to pay the settlement money without accepting or denying her charges. The SEC has also further directed Kim Kardashian to cooperate during the investigation.

Kim Kardashian has been charged $1.26 million from the SEC for illegally promoting cryptographic security.

The Securities and Exchange Commission has announced charges against Kim Kardashian for promoting the security of crypto assets offered and sold by EthereumMax via social media. Kim Kardashian has agreed to settle the charges and pay a $1.26 million fine, fine and interest, and cooperate with the commission’s ongoing investigation. According to the SEC’s order, Kim Kardashian did not disclose that he had been paid $250,000 to post on his Instagram account about EMAX tokens, a crypto asset security provided by Ethereummax. Kardashian’s post contains a link to the EthereumMax site that provides guidance to potential investors buying EMAX tokens. According to the SEC’s order, Kim Kardashian violated the anti-propaganda provisions of the Government Securities Act.

Without acknowledging or denying the SEC’s findings, Kim Kardashian agreed to pay the aforementioned $1.26 million, including a fine of approximately $260,000. Kim also agreed not to promote crypto-asset securities for a significant period of time (about three years). The ongoing SEC investigation is led by Jon A. Daniels, Alison R. Levine, Pamela Sawhney of the Enforcement Department’s Crypto Assets and Cyber ​​Unit and Kerri Palen, Lisa Knoop and Victor Suthammanot of the New York Provincial Office. . The case was managed by Mark R. Sylvester and Carolyn Welshhans of the Crypto Assets and Cyber ​​Unit. The SEC’s statement calling for vigilance against illegal celebrity-sponsored donations of crypto assets can be viewed here. SEC Chairman Gensler is known for posting a video warning investors not to choose investments based solely on recommendations from celebrities or influencers.

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