The Securities and Exchange Commission (SEC) has fined on Monday Kim Kardashian $1.26 million for touting on Instagram cryptocurrency project EthereumMax without disclosing the payment she received for the promotion.
The regulator said in a press release that Kardashian got $250,000 to publish a post about EMAX tokens. The SEC added that besides the post itself, the advertisement also a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens. SEC Chain, Gary Gensler, said:
"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."
The SEC added that Kardashian has already agreed to pay the aforementioned fine, which consists of $260,000 in disgorgement, and a $1 million penalty.
