- The SEC has charged Kim Kardashian a $1.26 million fine for promoting EthereumMax.
- Kim Kardashian failed to disclose that she received $250,000 for promoting EMAX.
- The reality-TV star also agreed to not promote any crypto securities for three years.
The Securities and Exchange Commission (SEC) has charged Kim Kardashian a $1.26 million fine for illegally promoting the crypto asset EthereumMax (EMAX) on her Instagram handle.
Today we announced charges against Kim Kardashian for promoting a crypto security offered by EthereumMax without disclosing the payment she received for the promotion.Kardashian agreed to settle the charges, pay $1.26 million, and cooperate with the investigation.
— U.S. Securities and Exchange Commission (@SECGov) October 3, 2022
Apparently, Kim Kardashian failed to disclose that she received a sum of $250,000 for promoting EthereumMax tokens with a link to the project’s website. Kardashian agreed to settle the allegations by paying a fine of $1.26 million, which was divided between a $1 million fine and a disgorgement of $260,000. Kim also agreed to not promote any crypto securities for three years.
Kardashian’s Instagram post read:
Are you guys into crypto???? This is not financial advice but sharing what my friends just told me about the EthereumMax token. A few minutes ago EthereumMax burned 400 trillion tokens — literally 50% of its management portfolio going back to the entire E-Max community. Join the e-max community by swiping up.
The SEC chairman Gary Gensler tweeted that the penalty served as a reminder that just because a celebrity recommends a certain investment opportunity, it doesn’t necessarily follow that they are suitable for all investors.
Moreover, Kardashian’s attorney spoke in a public statement: “Ms. Kardashian is pleased to have resolved this matter with the SEC. Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter. She wanted to put this issue behind her in order to avoid a protracted dispute.”
Kardashian was not the only one under scrutiny to promote crypto projects, American boxer Floyd Mayweather Jr. was also sued for promoting EthereumMax. Mayweather publicized the idea of the project in the runup to a televised fight with Youtuber Logan Paul, the same month for which some tickets were available for purchase with EthereumMax tokens. According to data from Coinmarketcap, the price spiked after Mayweather announced that tickets could be bought with EthereumMax tokens on May 26. On May 29, it peaked at 420 times its pre-May 26 level.
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