The SEC announced on Monday that Kim Kardashian has agreed to pay a $1.26 million fine for illegally promoting the EthereumMax crypto in the summer of 2021.
The fine includes a $1 million penalty as well as a $260,000 adjustment that represents the amount Kim Kardashian received and interest. The ex-wife of rapper Kanye West, who agreed to cooperate with the SEC, also agreed not to promote crypto assets for three years.
“This case is a reminder that when celebrities or influencers promote investment opportunities, including crypto assets, it does not mean that these investment products are good for all investors,” SEC boss Gary Gensler said in a statement.
The SEC’s order concludes that Kardashian did not disclose that she was paid to post on her Instagram account about EMAX tokens…Her post contained a link to the EthereumMax website, which provided instructions to potential investors to purchase EMAX tokens,” the SEC wrote.
The influencer and businesswoman, who has neither admitted nor denied the regulator’s findings, had been the subject of a complaint filed by several investors who invested in EMAX earlier this year. The token’s price had quickly collapsed following its launch in May 2021.
According to the SEC, Kim Kardashian, who besides the ban on promoting cryptos for 3 years, violated the “anti-stealing provision of the federal securities laws”. The $1.26 million fine includes the $250,000 the celebrity received for her Instagram post.