Kim Kardashian was fined a total of $1.26 million by the US Securities and Exchange Commission (SEC) for failing to disclose to followers that she was paid to promote EMAX tokens on Instagram, a crypto asset offered by EthereumMax.
According to reports, Kardashian was allegedly paid USD 250,000 for the promotion content, however, failed to make mention of such. She, however, agreed to settle the civil charges to the SEC without admitting or denying the findings.
“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.
In total, the settlement includes a $1 million fine as well as forfeiting the $250,000 payment she received, plus interest. She has also agreed not to promote any crypto asset securities for three years.