The Securities and Exchange Commission has charged Kim Kardashian for promoting a crypto asset security sold and offered by EthereumMax on social media, resulting in a scam. This is without reporting the compensation she got for a promotion.
In exchange for dropping the accusations, paying around $1.26 million in fines, forfeiture, and interest, going along with the investigations, the star of Keeping Up With The Kardashians, Kim, agreed to settle the case.
According to the SEC’s decision, Kardashian did not disclose that she received $250k from EthereumMax to write a post regarding EMAX tokens on her Instagram account. Kim’s post included a link that sent her followers to EMAX’s website, where instructions on how to buy EMAX coins were posted.
According to SEC, Kim Kardashian broke the federal securities law, which mentions an anti-touting clause. Therefore, Kardashian not only agreed to pay the $1.26 million, including the $260k disgorgement, but she also consented to refrain from endorsing any cryptocurrency-related securities for three years.
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