It is a decision that will shock the young crypto industry — and undoubtedly curb the enthusiasm of celebrities who associate their names with projects about which they know little or nothing.
The U.S. Securities and Exchange Commission has just charged Kim Kardashian for promoting on social networks a cryptocurrency that turned out to be a scam.
The SEC charged the influencer with “touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion,” according to a press release.
The regulator reproaches Kardashian for not having disclosed that she had been paid to advertise this cryptocurrency.
Kardashian Assessed a $1.26 Million Fine
“The SEC’s order finds that Kardashian 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,” the federal agency explained.
“Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase Emax tokens.”
The reality-TV star, whose fortune is estimated at $1.8 billion, has agreed to pay $1.26 million in penalties to settle the investigation. She also agreed not to promote any crypto-asset securities for three years.
Kardashian neither admitted to nor denied the regulator’s findings, the SEC said.
“This case is a reminder that when celebrities or influencers endorse investment opportunities,…
