Crypto Touting Meaning Explained as SEC charges Kim Kardashian with $1.26 million fine

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Kim Kardashian is in big trouble over an Instagram post she wrote about cryptocurrency in June 2021. On Monday, October 3, 2022, the Securities and Exchange Commission fined the Kardashians star $1.26 million for illegally touting cryptocurrencies.

Crypto Touting is a typical practice where an individual or organization convinces others to buy or give specific services or goods by directly soliciting them. Accordingly, crypto touting refers to the promotion of specific cryptocurrencies or digital tokens. As the SEC charges indicate, Kim Kardashian published a promotional post about the crypto resource EMAX tokens offered and sold by EthereumMax.

However, she did not disclose the payment she received for promoting the aforementioned crypto-assets, which violates the federal securities law’s anti-bullying provisions. As a result, the Securities and Exchange Commission fined the 41-year-old media personality $1.26 million. Since Kim Kardashian reportedly received $250,000 for the promotional contribution, the amount included $1 million in fines as well as $260,000 in interest and disgorgement. According to an official SEC statement, Kim Kardashian agreed to pay the amount as a settlement without admitting or denying the charges. In addition, the SEC has ordered Kim Kardashian to cooperate while the investigation into the matter is reportedly active.

SEC Charges Kim Kardashian $1.26 Million for Illegally Offering Crypto Security

The Securities and Exchange Commission has announced charges against Kim Kardashian for promoting crypto-asset security offered and sold by EthereumMax via social media without disclosing the payment she received for the promotion. Kim Kardashian has agreed to settle the charges, pay $1.26 million in fines, disgorgement and interest and cooperate with the Commission’s ongoing investigation. An SEC order found that Kim Kardashian failed to disclose that she was paid $250,000 for allegedly posting on her Instagram account about EMAX tokens, a crypto-asset security presented by EthereumMax. Kardashian’s post included a link to the EthereumMax page, which provided instructions for potential investors to purchase EMAX tokens. The SEC order states that Kim Kardashian violated the anti-slander provision of the Government Securities Act.

Without admitting or denying the SEC’s findings, Kim Kardashian agreed to pay the aforementioned $1.26 million, including roughly $260,000 in disgorgement, which settles her promotional payment, in addition to prejudgment interest and a $1,000,000 penalty. Kim also agreed not to promote any crypto asset securities for a significant period of time (approximately 3 years). The SEC investigation, which is ongoing, is being led by Jon A. Daniels, Alison R. Levine and Pamela Sawhney of the Division of Law Enforcement’s Crypto and Cyber ​​Activity Unit and Kerri Palen, Lisa Knoop and Victor Suthammanont of the New York State Office. . The case was handled by Mark R. Sylvester of the Crypto Assets and Cyber ​​Unit and Carolyn Welshhans. The SEC’s statement urging caution regarding possible illegal contributions to celebrity-backed crypto assets can be viewed here. SEC Chairman Gensler reportedly released a video warning investors not to make any investment choice based solely on the recommendation of a well-known celebrity or influencer.

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