Kim Kardashian pays $1.26 million to settle SEC charges for crypto promo

    03 Oct 2022

    TV star Kim Kardashian has paid $1.26 million to the US SEC to settle charges relating to her promotion of EthereumMax. Moreover, Kardashian must not promote any cryptocurrencies for three years.

    According to a Monday press release, the SEC had filed charges against the “Keeping Up With the Kardashians” star for not disclosing the $250,000 payment she received for posting promotional content about EthereumMax. Kardashian also agreed not to promote any cryptocurrencies for three years.

    Back in 2021, Kardashian shared promotional content with her followers on Instagram. Kim Kardashian has one of the largest audiences on social media, counting about 74 million followers on Twitter and more than 331 million followers on Instagram.

    EthereumMax had no relation to Ethereum and was actively promoted by many celebrities, including professional boxer Floyd Mayweather Jr. Later, EthereumMax’s investors sued Kardashian and Mayweather this January.

    Gary Gensler, the SEC Chairman, explained his agency’s verdict in a tweet:

    “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.”

    Under US law, people who tout a certain stock or crypto security need to disclose not only that they are getting paid but also the amount, the source, and the nature of those payments, Gensler said in an interview with CNBC.

    “This was really to protect the investing public – when somebody is touting that stock and whether that’s a celebrity or an influencer or the like, and that’s at the core of what this is about,” he added.

    Leave a Reply

    Your email address will not be published. Required fields are marked *