The US Securities and Exchange Commission brought charges against Kim Kardashian for promoting a crypto security – Ethereum Max.
The popular US media personality, model, and businesswoman agreed to pay $1.26 million to settle the charges.
- CryptoPotato reported in January this year a lawsuit filed in California against Floyd Mayweather and Kim Kardashian, claiming that they misled investors by promoting a cryptocurrency security called EthereumMax (EMAX).
- The SEC announced on October 3 reaching an agreement with Kardashian, in which she will pay $1.26 million in penalties, disgorgement, and interest for failing to disclose the payment she received for promoting the token.
- The TV personality will also cooperate with the agency as the investigation continues. According to the Commission, Kardashian received $250,000 to promote the EMAX tokens on her Instagram page, which, as of today, has more than 330 million followers.
- SEC Chair Gary Gensler commented:
“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. We encourage investors to consider an invesment’s potential risks and opportunities in light of their own financial goals.”