Kim Kardashian Charged $1.2M by the SEC For EthereumMax Promotion

American TV reality superstar, Kim Kardashian has been charged by the United States Securities Commission (SEC) for the promotion of EMAX Token, the native coin of the EthereumMax protocol. 


As contained in a press release issued by the commission, Kim did not disclose that she was paid the sum of $250,000 for the promotion which she posted on her Instagram handle. As described by the SEC, the posted promotion contained a link that lead visitors to a landing page where instructions on how to buy the token can be obtained.


Kim has neither admitted to nor denied she breached the anti-touting provision of the federal securities laws. However, she has agreed to pay the total sum of $1.26 million, including $260,000 as disgorgement to stand in for the payment she received for the promotions and pre-judgment interest, and a $1 million penalty.


“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” said SEC Chair Gary Gensler. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”


The regulator said it is mandatory that celebrities disclose whatever remuneration they were given and that the members of the public deserve to know. Per the sanctions levied on the celebrity, she has also agreed not to promote any crypto asset for the next three years. In addition, she has agreed to co-operate with the investigators as the case is still very much open.

The SEC is known to crack down on celebrities for promoting fraudulent crypto tokens. Back in June 2020, professional boxing legend, Floyd Mayweather was also indicted for the promotion of Centra Tech’s Initial Coin Offering (ICO) back in 2017.

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Instagram Influencers Sued by Investors for Falsely Promoting Crypto Tokens

Instagram influencers Kim Kardashian and American boxer Floyd Mayweather have been sued by investors, accusing celebrities of falsely promoting crypto tokens to mislead investors.

The lawsuit, filed by a New York resident who bought EMAX tokens and lost money, is proposed to be filed as a class action in federal court in Los Angeles on Jan. 7, according to the report from Reuters on Jan. 11.

In June last year, Kim Kardashian West posted an Ethereum-related network project-related story on her Instagram story with 228 million followers.

Kim Kardashian West shared a cryptocurrency called “Ethereum Max token” in the story she posted. The post was not financial advice, but Kim Kardashian West labelled it with hashtag #AD beneath, indicating that this post was charged.

Mayweather promoted EthereumMax on his boxer shorts during his June fight with YouTube star Logan Paul.

The lawsuit reads:

“The company’s executives, collaborating with several celebrity promoters … made false or misleading statements about EthereumMax through social media advertisements and other promotional activities.”

The company’s EthereumMax was also named in the lawsuit. EthereumMax said in a statement:

“The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project.”

Last Sept. 7, British financial watchdogs were wary of investors’ cryptocurrency investment risks introduced by well-known influencers like Kim Kardashian West.

Chairman of the Financial Conduct Authority Randell stated that it is not that this particular token is a scam, saying that:

“But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.”

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