The U.S. Securities and Exchange Commission (SEC) announced charges against well-known media personality and businesswoman Kim Kardashian for touring a crypto asset security on Instagram offered and sold by EthereumMax. She did not disclose the $250,000 payment she received for the promotion. Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.
Kim Kardashian published a post on her Instagram account about the crypto asset EMAX token offered by EthereumMax. Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.
“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,” said SEC Chair Gary Gensler. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.“
Without admitting or denying the SEC’s findings, Kim Kardashian agreed to pay $1.26 million, including approximately $260,000 in disgorgement, which represents her promotional payment, plus prejudgment interest and a $1,000,000 penalty. Kardashian also agreed not to promote any crypto asset securities for three years.
