The Securities and Exchange Commission (SEC) has fined TV personality Kim Kardashian for promoting EMAX tokens to investors on her Instagram feed. The celebrity will pay $1.26 million as settlement charges, including a $1 million penalty. Kim Kardashian will also repay the $250,000 she received as compensation for the promotion.
Furthermore, Kardashian has agreed not to promote crypto assets for three years, as per multiple sources. The SEC is strictly against celebrities promoting securities, including cryptocurrencies, without disclosing the fact that they are being remunerated for the promotion.
Kardashian promoted EMAX tokens issued by the online portal EthereumMax. Her Instagram posts included links to the EthereumMax site, where instructions to invest in EMAX were available.
Kardashian neither agreed nor denied the allegations but settled the case with the SEC so she can continue focusing on her other businesses. Following the news, on Monday, SEC Chairman Gary Gensler said on CNBC, “You have to disclose not only that you’re getting paid, but the amount, nature of it.”
“This was really to protect the investing public when someone is touting a stock, whether that is a celebrity, an influencer, or the like,” added Gensler.
Amid the slump in cryptocurrencies, the price of Ethereum (ETH-USD) has plunged 60.7% in the past year.