Via press release from the SEC:
The Securities and Exchange Commission today announced charges against Kim Kardashian for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.
Kardashian agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.
The SEC’s order finds that Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax.
Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens. The SEC’s order finds that Kardashian violated the anti-touting provision of the federal securities laws.
Without admitting or denying the SEC’s findings, Kardashian agreed to pay the aforementioned $1.26 million, including approximately $260,000 in disgorgement, which represents her promotional payment, plus prejudgment interest, and a $1,000,000 penalty.
JUST IN: The Securities and Exchange Commission charged Kim Kardashian over posts she made promoting a crypto asset security sold by EthereumMax “without disclosing the payment she received for the promotion.” https://t.co/YkhmCO7IXc
— ABC News (@ABC) October 3, 2022
“…which she posted on Instagram in June of last year. She started the post by asking her millions of followers, ‘ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.'”https://t.co/cTk7lOF8fE
— The Recount (@therecount) October 3, 2022
In addition to paying a $1.26M fine to the SEC, Kim Kardashian also agreed to not promote any crypto in the next three years. pic.twitter.com/MdaGwCfK5e
— The Recount (@therecount) October 3, 2022