Kim Kardashian Charged $1.26 M for Unlawfully Touting Crypto Security Without Disclosing Pay

Upon hearing the news, the price of Ethereum Max plunged 90.43% within minutes.

The U.S. Securities and Exchange Commission charged Kim Kardashian for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.

The SEC’s order finds that the reality TV superstar and influencer failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax. Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.

Upon hearing the news, the price of Ethereum Max plunged 90.43% within minutes.

Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation. The celebrity also agreed to not promote any crypto asset securities for three years.

"The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion," said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. "Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information."