Kim Kardashian pays SEC $1.26 million to settle EthereumMax charge

The United States SEC has accused the American celebrity and influencer of promoting a crypto-asset security. currency without disclosing the payments received to its subscribers.

American socialite Kim Kardashian will pay $1.26 million in fines for her involvement in promoting a cryptocurrency system called EthereumMax (EMAX).

The U.S. Securities and Exchange Commission (SEC) announced charges against Kardashian on October 3 for "boasting on social media a crypto asset security offered and sold by EthereumMax" without disclosing the payment received for his promotional involvement.

Kardashian has agreed to settle the charges and pay $1.26 million in penalties, reimbursement, and interest and is willing to cooperate with further SEC investigations into the EthereumMax project.

The announcement stated that Kardashian had not disclosed a $250,000 payment she received for posting a post on her Instagram profile promoting EMAX tokens with a link to the project's website.< /p>

The SEC order finds that Kardashian violated the anti-soliciting provision of federal securities laws. This has been the case with other major cryptocurrency securities breaches involving the SEC in the past.

Kardashian neither admitted nor denied the SEC's findings, but agreed to settle the charges. This was broken down into $260,000 restitution as well as a $1 million penalty. Kardashian has also agreed not to promote any cryptocurrency assets until 2025.

Today @SECGov we indicted Kim Kardashian for illegally touting crypto security.

This case reminds us that when celebrities/influencers endorse investment opportunities, including crypto asset securities, it does not mean that those investment products are suitable for all investors.

SEC Chairman Gary Gensler also used the order to advise the general public to exercise due diligence when investing in cryptocurrency assets, while reminding celebrities and influencers of their obligation...