Kim Kardashian, a socialite, was charged by the SEC with illegally promoting Ethereummax

The Kardashians were charged on Monday by the U.S. Securities and Exchange Commission (SEC) with improperly endorsing the digital asset Ethereummax. According to the American regulatory body, Kardashian agreed to resolve the allegations, pay $1.26 million in fines, and participate in the SEC's on-going inquiry.

Kardashian Agrees to Pay $1.26 Million in Penalties after Being Charged by the SEC and Promises Not to Promote Any Crypto Assets for Three Years.

According to a story published by Bitcoin.com News in mid-June 2021, popular television personality Kim Kardashian was promoting a token called ethereummax (EMAX). 

When she did, Kardashian explained that she was "sharing what my friends just told me about the Ethereum Max token" and published an Instagram photo with the hashtag "#AD." 

Kardashian wasn't the only famous person to endorse EMAX; professional boxer Floyd Mayweather and former Boston Celtics forward Paul Pierce also did so.

Kim Kardashian, a celebrity of reality television, promoted ethereummax (EMAX) to her Instagram followers in June 2021. (post pictured right). 

Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information," stated Gurbir S. Grewal, director of the U.S. SEC's Division of Enforcement. 

In a statement released by the SEC on October 3, it is claimed that Kardashian omitted the $250,000 fee she received to broadcast the Instagram post to her 228 million followers. 

The U.S. agency explained on Monday that "Kardashian's message includes a link to the Ethereummax website, which gives instructions for potential investors to purchase EMAX coins." In response to Kardashian's allegations, Gary Gensler, the chair of the SEC, released a statement and made an animated appearance in the film.

In the SEC release, Gensler said, "This case is a reminder that just because celebrities or influencers recommend investment possibilities, including crypto asset securities, doesn't guarantee that those investment products are suitable for all investors. 

We advise investors to take their personal financial objectives into account when evaluating an investment's possible risks and opportunities. Gensler continued:

The situation involving Ms. Kardashian also serves as a warning to famous people and other groups that they must comply with the law by telling the public when and how much they are paid to promote investment in stocks.

The SEC order essentially states that the socialite and reality TV personality broke the anti-touting regulations. 

Without making any admissions or denials, Kardashian consented to a $1.26 million settlement with the SEC, which includes about $260,000 in disgorgement penalties. 

In addition, Kardashian has made a three-year commitment to refrain from endorsing any stocks linked to crypto assets. 

Kardashian has had a difficult month dealing with the backlash from the leaked sex tape that included her and well-known musician and actor Ray J.

Tags in this story

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What do you think about the charges against Kardashian for shilling ethereummax? Let us know what you think about this subject in the comments section.

Jamie Redman is a Florida-based financial technology writer who serves as the News Lead for Bitcoin.com News. Since 2011, Redman has taken an active part in the Bitcoin community.

He is passionate about decentralized applications, open-source software, and Bitcoin. For Bitcoin.com News, Redman has penned more than 6,000 pieces about the disruptive protocols that are currently under development since September 2015.

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