Washington, 3 Oct. In order to resolve allegations that she improperly promoted a cryptocurrency security, Kim Kardashian has agreed to pay $1.26 million in fines, disgorgement, and interest, the U.S. Securities and Exchange Commission announced on Monday.
According to a statement from the SEC, influencer and reality television star Kardashian did not disclose that she received $250,000 from EthereumMax to post on her Instagram account about the crypto asset security known as EMAX tokens.
As SEC Chair Gary Gensler noted, "This case is a reminder that just because celebrities or influencers support investment possibilities, including crypto asset securities, doesn't guarantee that those investment products are suitable for all investors."
According to the SEC, the $1.26 million settlement includes a $1 million fine in addition to the amount Kardashian got for the marketing. The agency noted that Kardashian also consented to refrain for three years from promoting any crypto asset securities.
Kardashian is one of several celebrities named in a class action lawsuit brought by investors who claim they lost money after the celebrities promoted the cryptocurrency in question. The lawsuit was filed in January in a California U.S. District Court. This court case is still pending.
On Monday, the price of an EthereumMax coin decreased by 1.75%.
In November 2018, the American regulator also filed charges against boxer Floyd Mayweather Jr. and "DJ Khaled," a music producer, for allegedly failing to disclose money they received for promoting investments in initial coin offerings.