2 years ago
Kim Kardashian will pay $1.26 million to settle federal charges that she promoted a cryptocurrency without disclosing she was paid to do so, the Securities and Exchange Commission said Monday.
The SEC alleged that the celebrity billionaire used her Instagram account to tout EthereumMax’s token, EMAX, without adding any disclaimer that she was being given $250,000 to publish the posts. She provided links to where potential investors could learn how to buy the digital token.
The case comes as the SEC under Chair Gary Gensler has been cracking down on the $928 billion crypto market. The SEC had warned consumers about celebrities posting about investments online.
“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," Gensler said in a statement. "We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals."
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