The Securities and Exchange Commission (SEC) today filed charges against Kim Kardashian for promoting on social networks a cryptocurrency asset security issued and distributed by EthereumMax without disclosing the compensation she received for the advertising. Kardashian consented to resolve the allegations, pay $1.26 million in fines, disgorgement, and interest, and assist the SEC’s continuing inquiry. According to the SEC’s order, Kim Kardashian did not disclose that she received $250,000 from EthereumMax to write a post regarding EMAX tokens on her Instagram account. Kardashian’s post included a URL to the EthereumMax website, where prospective investors could find instructions on how to buy EMAX coins. Charges Serve as Warning SEC Chairman, Gary Gensler, noted that this case serves as a warning that just because a celebrity or other influential person promotes a particular investment opportunity, such as securities backed by cryptocurrencies, does not indicate that all investors should use that opportunity. He further stated, “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.” Important to Disclose Exchange Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, emphasized that any celebrity or other individual who promotes a cryptocurrency asset security must report the type, source, and amount of money they received in exchange for the pro...
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