This socialite is the next to make it to the SEC hitlist on grounds of…

ambcrypto.com:

The Securities and Exchange Commission (SEC), on 3 October,  charged American model and socialite Kim Kardashian for touting a crypto asset security on social media. The TV personality also failed to disclose that she received a payment for the promotion of the same.

The SEC claimed that Kardashian was paid $250,000 to promote EMAX tokens on Instagram that are sold by EthereumMax. Kardashian agreed to pay penalties, disgorgement, and interest worth $1.26 million and cooperate with the Commission’s ongoing investigation.

According to the SEC’s order, Kardashian violated the anti-touting provision of the federal securities laws. She further agreed to not engage in the promotion of any crypto asset or securities for the next three years.

This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.

— Gary Gensler (@GaryGensler) October 3, 2022

Gary Gensler, SEC Chair, also commented on the issue at hand. He reiterated that endorsement of a particular investment options, including crypto asset securities doesn’t make these assets legitimate. He further added that endorsements by celebrities or influencers shouldn’t be considered as genuine. Individuals should conduct their own study before investing.

“The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.