Kim Kardashian paid a $1.26 million fine to the SEC for promoting Ethereum Max without disclosing compensation.
In addition, the reality TV star agreed not to promote any cryptocurrencies for three years.
Kim Kardashian paid the Securities and Exchange Commission $1.26 million to settle charges that came from her promoting the Ethereum Max digital token.
According to an SEC press release, the SEC filed charges against the “Keeping up with the Kardashians” star for failing to disclose the $250,000 payment she received for posting promotional content about Ethereum Max. Kardashian also agreed to refrain from promoting any cryptocurrency for three years.
Kim Kardashian distributed promotional content to her Instagram followers in 2021. Kardashian has 331 million Instagram followers and almost 74 million Twitter followers, making her one of the most popular people on social media.
Professional boxer Floyd Mayweather Jr. also promoted Ethereum Max, which has nothing to do with the Ethereum blockchain. Investors in Ethereum Max sued both Kardashian and Mayweather in January.
“This case serves as a reminder that just because celebrities or influencers endorse investment opportunities, including crypto asset securities, that doesn’t mean those investment products are appropriate for all investors,” SEC Chairman Gary Gensler said in a tweet.