Kim Kardashian did not disclose that she was paid for promoting EthereumMax’s crypto tokens, EMAX|Lahore Herald|CC BY 2.0
Kim Kardashian will pay $1.26 million to the US Securities and Exchange Commission (SEC) for promoting EthereumMax’s crypto tokens on Instagram without disclosing that she was paid for it.
The Commission charged the reality TV star for failing to disclose the $250,000 payment she received for a June 2021 Instagram story touting the crypto asset. The story featured the hashtag “#ad” and included a link to EthereumMax’s website.
Anyone promoting securities is legally required to disclose when and how much they are paid for promoting investment in securities.
Kim’s promotion didn't help the cryptocurrency as EMAX plummeted in value about a month after the post.
Other than Kim Kardashian, high-profile celebrities like Floyd Mayweather Jr. and basketball player Paul Pierce were also sued for promoting EthereumMax’s tokens in January.