Kim Kardashian Charged With SEC Violation Over Unlawful Crypto Post

One of the biggest entrepreneurs in the world today is Kim Kardashian. She may have a lot of projects, but breaking rules from promotion can be a problem with an oversight commission.

According to ABC News, The Securities and Exchange Commission on Monday charged Kim Kardashian over a post she made to promote a crypto asset security sold by EthereumMax “without disclosing the payment she received for the promotion.” She will pay $1.26 million to settle the civil charges, the SEC said in its announcement.

According to the SEC, Kardashian failed to disclose that she received $250,000 to publish a post on her Instagram account about EMAX tokens. The crypto asset security was being offered by EthereumMax.

“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,” SEC Chair Gary Gensler said in a statement.

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“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals,” he added.

The SEC said that the $1.26 million settlement equals the payment Kardashian received for the promotion and a $1 million penalty. Kardashian agreed to forego the promotion of any crypto asset securities for three years, the agency added.

Kardashian is among a number of celebrities named in a class-action lawsuit filed last January in a California U.S. District Court over allegations from investors that they suffered losses after the stars promoted the crypto coin. That court case is ongoing.

The plaintiffs invested money after “viewing numerous celebrity endorsements of EMAX,” the lawsuit said. Kardashian filed a motion to dismiss the lawsuit last month, saying that none of the investors have seen her promotional Instagram posts. The value of an EthereumMax coin fell 1.75% on Monday. Keep checking back with Thirsty for more.

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