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Thursday, June 1, 2023

Illegal peddling of EthereumMax tokens! “Hip Gold” fined $1.26 million

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Kim Kardashian was fined $1.26 million by the U.S. Securities and Exchange Commission (SEC) for illegally selling EthereumMax (EMAX) tokens.

According to the SEC’s press release , Kim Kardashian posted a promotional post on Instagram about the EMAX token in 2021 , but did not disclose to the public that she had charged a $250,000 “industry assignment fee” for it. The SEC found that Kim Kardashian violated the anti-peddling provisions of the federal securities laws.

SEC Division Director Gurbir S. Grewal stated:

Federal securities laws expressly require that any celebrity or other individual promoting cryptoasset securities must disclose the nature, source and amount of compensation they receive. Investors have a right to know whether a security is being advertised fairly, and Ms. Kardashian did not disclose that information.

Kim Kardashian has agreed to pay $1.26 million, including approximately $260,000 in disgorgement and interest, and a $1 million fine, without “admitting” or “denying” the allegations. In addition, Kim Kardashian also promised not to promote any cryptocurrency for three years.

SEC Chairman Gary Gensler said in a statement:

This case reminds us that when celebrities or influencers endorse investment opportunities, including crypto asset securities, it does not mean that these investment products are suitable for all investors.

It is worth noting that EthereumMAX has nothing to do with Ethereum, it is just an ERC-20 token issued based on the Ethereum blockchain, the purpose is to create a “robust and scalable ecosystem to fully leverage the power of DeFi. strength”.

According to EthereumMAX’s white paper, EMAX is a token designed to “deliver cultural advantages”, giving holders privileged access to popular restaurants and clubs. In addition, the project party has also announced that it will launch an exchange, NFT market, etc. related to EthereumMax, but in the end, it came to nothing.

As early as 2021, the UK Financial Conduct Authority (FCA) issued a warning against EthereumMAX , and directly named Kim Kardashian to encourage fans to join the “Ethereum Max Community” and invest in this digital token, which is equivalent to killing innocent consumers. put at risk.

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