Kim Kardashian Set to Pay $1.26M Fine for Promoting Ethereum-Max on Instagram
On Monday, the Securities and Exchange Commission (SEC) announced charges against Kim Kardashian for promoting EthereumMax on Instagram without disclosing the $250,000 payment she received for the promotion.
The news comes nearly seven months after Floyd Mayweather, Kim Kardashian, and Paul Pierce were all sued for their promotions of EthereumMax. Investors accused the celebrities of colluding with EMAX co-founders Steve Gentile and Giovanni Perone to pump the token’s price to lure buyers and then dump it, a scheme known all too well in the crypto space.
Kardashian agreed to pay $1.26 million to settle the charges and will cooperate with the Commission’s ongoing investigation. She also agreed not to promote crypto securities for three years.
Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens. Although Kardashian’s post included “#ad” and the common phrase “Not Financial Advice,” according to the SEC, she should have disclosed the exact amount she was paid for the promotion.
“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,” said SEC Chair Gary Gensler. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
“Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities,” Chair Gensler added.
Do you think celebrities should be allowed to promote crypto to their uninformed audience, or do you think she did enough by adding “#ad” and “Not Financial Advice” in the post? Let us know in the comments below. 👇🏽