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.
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.
"The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion," said Gurbir S.
The SEC’s order finds that Kardashian violated the anti-touting provision of the federal securities laws.
Kardashian also agreed to not promote any crypto asset securities for three years.
The SEC’s statement urging caution regarding potentially unlawful celebrity-backed crypto asset offerings can be found here