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Kim Kardashian lands in trouble for one of her Instagram posts, fined over Rs 10 lakh

Kim Kardashian lands in trouble for one of her Instagram posts, fined over Rs 10 lakh

US Securities and Exchange Commission (SEC) has charged Kim Kardashian for not disclosing details of the payment she charged for a cryptocurrency promotion on her Instagram account. Here are the details.

Story highlights
  • Kim Kardashian needs to pay over Rs 10 lakh as fine for promoting cryptocurrency on her Instagram. 
  • SEC has charged Kardashian for hiding payments received for the Instagram promotion.  
  • Indian government has already levied tax on payments received via Instagram promotions.

Kim Kardashian has landed in trouble for one of her Instagram posts. She has been fined over Rs 10 lakh for unlawfully promoting an illegal crypto investment scheme on her Instagram account.

The US Securities and Exchange Commission (SEC) clears that as per federal laws, any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation received in exchange for the promotion. Failing to do so, lawful charges will be put against them.

The US SEC revealed that Kardashian failed to disclose the payment she charged for the post. It is said that she has been paid around $250,000 for advertising the cryptocurrency through her social media channel. The filing stated that charges have been levied against Kardashian for promoting EMAX tokens, offered and sold by EthereumMax, without disclosing the payment she received for the social media promotion.

To settle the charges, Kardashian has agreed to pay over Rs 10 lakh as a penalty, disgorgement, and interest, and to cooperate with the Commission's ongoing investigation. She has also agreed not to promote cryptocurrency-related investments for the next three years, the SEC filing noted.

"This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it doesn't mean that those investment products are right for all investors," SEC Chair Gary Gensler said. The SEC ruling stated that Kardashian had violated the federal securities laws' anti-touting clause.

Well, this is not the first time that celebrities have been charged by US authorities for illegally promoting cryptocurrencies. Boxer Floyd Mayweather, rap star DJ Khaled, actor Steven Seagal and rapper T.I. are some of the names who have been arrested for not revealing payment details for promoting crypto on their social platforms.

Published on: Oct 04, 2022, 11:06 AM IST
Posted by: BT Siteadmin, Oct 04, 2022, 11:06 AM IST