The Foreign Stock Exchange Association (SEC) announced on Monday that Kim Kardashian filed a lawsuit against her for marketing and promoting Ethereum Max on the social platform, but did not reveal that she won compensation for marketing and promotion. The big star of the reality show paid 1.26 million dollars.

In June 2021, Jenna will publish a post to her 250 million Instagram fans to promote Ethereum Max and the dynamic password lighting system. Although she did put the post on the label of "advertising", she did not disclose that she received a compensation of 250000 dollars for use. The SEC accused her of carelessness.

In a news release, the SEC claimed that the reality TV star violated the anti boasting provisions of the federal securities law. The famous star of the reality show was allowed to pay a penalty of 1 million US dollars and an export tax rebate of 260000 US dollars without denying or approving the accusation. She is also willing not to promote the security of all digital currencies in three years.

Gary Gensler, the current chairman of the SEC, pointed out during the evaluation and mediation that "this case reminds us that when celebrities or famous people identify with investment opportunities including crypto asset securities, it does not mean that this investment and wealth management product is applicable to all investors. We encourage investors to consider the risks and opportunities of investment according to their own financial goals."

Today @ SECGov, everyone accused Kim Kardashian of illegally selling encryption security.

This case reminds us that when celebrities/famous people agree with investment opportunities including crypto asset securities, it does not mean that such investment and wealth management products are applicable to all investors.

-Gary Gensler (@ Gary Gensler) October 3, 2022

Gensler added that the settlement statement also reminded celebrities that the US Securities Law requires them to disclose to the public "when they are and how much they pay to promote stock investment".

When receiving a live interview on CNBC Finance Channel on Monday, Jansler strictly implemented this information. He said: "Decades ago, the United States Congress passed a law and regulation called the Securities Act to protect the masses. Part of the law and regulation requires that if you sell individual shares, you need to announce that you may get paid."

In addition to the SEC's allegations, earlier this year, some investors bought Ethereum Max before its collapse and sued Kim. This kind of investor also sued the boxer Floyd Mayweather and former NBA player Paul Pierce, claiming that the three people colluded with the founder of the token, cajoled investors, and then sold the token to them.

Follow CoinGeek's encryption illegal and criminal cartel series products, and deeply analyze the flow of group companies from BitMEX to Binance and Bitcoin. Com, Blockstream, ShapeShift, Coinbase, Ripple, Ethereum, FTX and Tether, who participated in the digital currency reform, have turned this field into a forbidden area for childish (even experienced) game players in the market.