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US Regulator Hit Kim Kardashian With $1.2M Fine For Crypto IG Posts

 |  October 3, 2022

Reality star and social media influencer Kim Kardashian was fined $1.26 million by the Securities and Exchange Commission (SEC) for failing to mention that she was paid to endorse EMAX tokens when she posted it on her Instagram (IG) account in June 2021.

Kardashian was paid $250,000 to publish an Instagram post to her 228 million followers about EMAX tokens, the crypto asset security offered by EthereumMax. Her post included a link to the EthereumMax website, which offered potential investors purchase information.

“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” SEC Chair Gary Gensler said in a Monday (Oct. 3) press release.

Read More: California Governor Signs Executive Order On Crypto Regulation

A lawsuit was filed against Kardashian, former NBA star Paul Pierce and boxing champion Floyd Mayweather in January for allegedly making false and misleading statements while promoting EthereumMax, PYMNTS reported in January.

The lawsuit filed in a California federal court by an investor claimed the cryptocurrency was a pump-and-dump scam. The class-action suit accuses the celebrities of “collaborating” with the executives to “misleadingly promote and sell the digital asset associated with EthereumMax.”

Unrelated to the lawsuit, the SEC’s own investigation concluded that Kardashian violated the anti-touting provision of federal securities laws.

Although she didn’t admit or deny the findings or charges by the SEC, Kardashian agreed to pay the fine, which includes her promotional payment, prejudgment interest, and a $1 million penalty, according to the release.

Further Reading: Crypto Needs Common Sense Financial Regulation – Suggestions for 2022

Top Antitrust Expert Joins Cravath from Paul Weiss Top Antitrust Expert Finch Joins Cravath from Paul Weiss

Top Antitrust Expert Joins Cravath from Paul Weiss

 |  January 21, 2025

Andrew Finch, a prominent figure in U.S. antitrust law and former top official at the Justice Department during the first Donald Trump administration, has made the move to Cravath, Swaine & Moore from rival firm Paul, Weiss, Rifkind, Wharton & Garrison. Finch, who most recently co-chaired the antitrust practice at Paul Weiss, is set to join Cravath’s litigation department as a partner in New York.

According to Reuters, Finch’s tenure at the Justice Department, where he served as principal deputy assistant attorney general and acting assistant attorney general in the antitrust division between 2017 and 2019, underscores his expertise in the field. His work in government, alongside his clients at Paul Weiss, including Spirit Airlines, Uber, and Mastercard, makes him a valuable addition to Cravath’s team. At Cravath, Finch will focus on advising clients on antitrust investigations, litigation, and merger reviews, according to the firm’s announcement.

In a statement, Faiza Saeed, Cravath’s presiding partner, highlighted Finch’s credentials, noting that his experience “will be invaluable to our clients as they navigate an increasingly complex regulatory environment.” Saeed’s comments reflect the growing demand for expert guidance in the fast-evolving antitrust landscape.

The news of Finch’s departure from Paul Weiss comes just after the inauguration of President Donald Trump for his second term, a timing that adds another layer of significance to the move. A Paul Weiss spokesperson expressed well wishes to Finch, acknowledging his contributions to the firm.

Cravath’s decision to bring Finch aboard is part of a broader trend where the firm, historically known for promoting from within, has increasingly looked outside for top-tier talent. In recent years, Cravath has recruited several former government officials, including a trio of regulatory experts in 2022 to open a new office in Washington, D.C. This follows the 2022 hire of Noah Phillips, a former commissioner at the U.S. Federal Trade Commission during the Trump administration, who now co-chairs Cravath’s antitrust practice alongside Christine Varney, a former U.S. assistant attorney general for antitrust under the Obama administration.

Source: Reuters