According to the latest reports, Kim Kardashian won a lawsuit against her and a few other celebrities over their earlier endorsement of the cryptocurrency platform named EthereumMax (EMAX). The same was reported on Tuesday after a judge went on to dismiss the case because of insufficient allegations.
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In January 2022, the plaintiffs alleged they suffered damages after celebrity endorsements of EMAX by the likes of Kim Kardashian, along with retired boxer Floyd Mayweather Jr. and Paul Pierce who is a National Basketball Association Hall of Famer.
Judge Michael Fitzgerald from the US District Court for the Central District of California, released an official document of the proceeding that reads, “The court acknowledges that this action raises legitimate concerns over celebrities’ ability to readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach.” The document further reads, “While the law certainly places limits on those advertisers, it also expects investors to act reasonably before basing their bets on the zeitgeist of the moment.”
Kim Kardashian agreed to pay $1.26 million as a penalty to the Securities and Exchange Commission (SEC). She paid the penalty to settle the charges for allegedly touting a cryptocurrency token on social media without having disclosed how much she earned from the promotion. For the unversed, Kim Kardashian posted a story on Instagram on June 2021 and invited her 328 million followers to invest in what is called EthereumMax.
Here is what Kim Kardashian wrote on her Instagram story while promoting the cryptocurrency token, “This is not financial advice. But sharing what my friends just told me about the Ethereum Max token!” The beauty mogul also added the word ‘ad’ among her hashtags, implying the purpose was to promote it.
SEC’s earlier statement
Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.
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
According to earlier reports, SEC has charged Kim Kardashian with unlawfully touting crypto security. The SEC further said that the beauty mogul was in violation of its rules when she chose to promote the crypto asset offered by EthereumMax without disclosing that she was paid to promote it.
Gary Gensler, Chairperson, US Securities and Exchange Commission, took to social media and revealed, “Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security. 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.”
Now, the latest that we know is that the judge decided to dismiss the motion because the complainant was not able to supply sufficient facts against Kim Kardashian and other associates.