Reality TV star Kim Kardashian has paid $1.26 million to the U.S. Securities and Exchange Commission to settle charges relating to her promotion of the EthereumMax digital token.
The SEC had filed charges against the "Keeping Up With the Kardashians" star for not disclosing the $250,000 payment she received for posting promotional content about EthereumMax, according to an SEC press release. Kardashian also agreed not to promote any cryptocurrencies for three years.
In 2021, Kim Kardashian shared promotional content to her followers on Instagram. Kardashian has one of the largest followings on social media, with 331 million followers on Instagram and close to 74 million followers on Twitter.
EthereumMax, which has no relation to the Ethereum blockchain, was also promoted by professional boxer Floyd Mayweather Jr. In January, investors of EthereumMax sued both Kardashian and Mayweather.
"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 Chairman Gary Gensler said in a tweet.
Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.
This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.
— Gary Gensler (@GaryGensler) October 3, 2022
Read more: Kim Kardashian and EthereumMax. Why?
UPDATE (Oct. 3, 2022 12:10 UTC): Updates headline and text. Adds background and additional details.