Kardashian posed a series of questions to her fans on her Instagram story “Do you guys like cryptocurrency? Sharing what my friends have just informed me about the Ethereum Max Token is not financial advice.”
The US Securities and Exchange Commission (SEC) said on Monday that reality TV star Kim Kardashian has paid a $1.26 million fine after being accused of improperly advertising an illegal cryptocurrency investment scheme on Instagram.
Kardashian also consented to refrain from endorsing any cryptocurrency-related securities for three years.
She did not disclose the cash she got for promoting a crypto asset that EthereumMax marketed and sold on social media.
According to the SEC, she consented to resolve the allegations, pay $1.26 million in fines, disgorgement, and interest, and assist the Commission’s continuing inquiry.
According to SEC Chair Gary Gensler, “this case is a reminder that just because celebrities or influencers recommend investing possibilities, including securities backed by crypto assets, doesn’t guarantee that those investment products are suitable for all investors.”
In a statement, Gensler added, “We advise individuals to assess an investment’s possible risks and possibilities in light of their personal financial goals.”
Kardashian posed the question to her fans in a series of images on her Instagram story, “Are you guys into crypto??? Sharing what my friends have recently informed me about the Ethereum Max Token is not financial advice.
She subsequently urged her followers to visit the EthereumMax website and “join the E-Max community.”
According to the SEC, Kardashian did not reveal that she received $250,000 from EthereumMax to post on her Instagram about EMAX tokens, a cryptocurrency asset security. Kardashian’s tweet included a link to the EthereumMax website, where prospective investors could find instructions on how to buy EMAX coins.
