SEC Accuses Kim Kardashian of ‘Pump & Dump’ Crypto Scheme.

Kim Kardashian was indicted and fined $1.26 million by the Securities and Exchange Commission for an Instagram post promoting a cryptocurrency that was described as a “pump and dump” scheme in a lawsuit filed against the influencer earlier this year.

On Monday, the SEC announced charges against the 41-year-old reality star “for promoting crypto-asset securities on social media…”. without disclosing the payment she received for the promotion,” — New York Post reports.

She allegedly earned $250,000 for a promotional Instagram post.

Kim Kardashian Allegedly Paid $250,000 for ‘Pump & Dump’ Crypto Instagram Post, Fined $1.23M

“This is not financial advice, but what my friends just told me about the Ethereum Max token!” Read Kim’s post. “A few minutes ago, Ethereum Max burned 400 trillion tokens – literally 50 percent of their admin wallet (and) giving it back to the entire E-max community.”

The SEC added that Kim K “agreed to settle the charges, pay $1.26 million in fines, penalties and interest, and cooperate,” while the investigation is still ongoing.

Kim reportedly paid the fines “without admitting or denying the SEC’s findings” and agreed not to promote the cryptocurrency for three years, according to the agency.

Kim is “pleased to have resolved this issue” and has “fully cooperated” with the SEC, the spokeswoman says

A spokesperson for the social media influencer said Kim was “asking to resolve this issue” and that she had “fully cooperated with the SEC from the beginning.”

“Ms. Kardashian is pleased to have resolved this matter with the SEC,” a spokesperson for Kardashian told the Post.

“Kardashian has been fully cooperative with the SEC from the beginning, and she remains willing to do whatever she can to assist the SEC in this matter.”

The spokesman added that “she wanted to put this matter behind her to avoid a prolonged dispute.”

“The settlement she reached with the SEC allows her to do that so she can move forward in various business endeavors.”

Ripley Museum officials are speaking out and say Kim Kardashian did not damage Marilyn Monroe’s dress after wearing it to the Met Gala. (Photo by Dimitrios Kambouris/Getty Images for The Met Museum/Vogue)

SEC says Kardashian case will make it clear to celebrities that they must disclose payments when promoting investments

SEC Chairman Gary Gensler said the case against Kim will make it clear to the masses that investment opportunities promoted by celebrities and social media influencers are “(not) suitable for all investors” and to be weary of such promotions, the Post reported.

“This case is a reminder that when celebrities or influencers endorse investment opportunities, including crypto-asset securities, that doesn’t mean those investment products are right for all investors,” said SEC Chairman Gary Gensler.

Hensley added that the case will also make it clear that celebrities and influencers can and will be held accountable if they fail to publicly disclose how much they were paid to promote investment opportunities.

“We encourage investors to consider potential investment risks and opportunities in light of their own financial goals,” Hensley said.

“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 investments.”

Kardashian and Floyd Mayweather were embroiled in a Crypto ‘Pump & Dump’ lawsuit earlier this year

Earlier this year, Kardashian and former boxing champion Floyd Mayweather were featured in a lawsuit alleging they misled their online followers by promoting “pump and dump” cryptocurrency schemes.

Former Boston Celtics star Paul Pierce was also named in the suit, according to the Post.

Both Kim and Floyd were accused of making “false or misleading statements” while promoting Ethereum Max tokens.

“In truth, the defendants sold EMAX tokens to investors so that they could sell their share of Float at a profit,” the lawsuit states.

Mayweather paid more than $600,000 in a settlement with the SEC without admitting or denying the regulator’s findings, NBC News reports.


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