Kim Kardashian will pay a fine to the US government for illegal cryptocurrency advertising

Kim Kardashian will pay $ 1.26 million to the SEC (US Securities and Exchange Commission) for illegal cryptocurrency advertising. According to the agency, Kardashian did not disclose that she was paid $ 250,000 for an advertising post about EMAX tokens on her Instagram page. Kardashian’s post contained a link to the EthereumMax website, where potential investors were offered instructions on how to buy tokens. The SEC’s ruling states that Kardashian violated the federal anti-false advertising provisions.

Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.

This case is a reminder that, when celebrities/influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.

— Gary Gensler (@GaryGensler) October 3, 2022

The saga with the SEC and the famous TV star began in January 2022. A lawsuit was filed against Kardashian because the celebrity allegedly misled investors by promoting the EthereumMax (EMAX) cryptocurrency on social media. Fans of the star could purchase paid tickets for tokens, the number of which increased dramatically after Kardashian’s promotion. Instead, EthereumMax collapsed. It should be added that boxer Floyd Mayweather was also involved in the deal.

In early August, Kardashian’s team of lawyers advocated the dismissal of 10 lawsuits against the influencer. The key point was Kardashian’s Instagram stories: «It is important that none of the named plaintiffs proves in their lawsuit that viewing Kardashian’s Instagram videos influenced their decision to buy tokens,» the lawyers emphasized.

Despite the fact that the socialite disagrees with the SEC’s findings, Kardashian decided to pay the fine. She also promised not to advertise any securities or cryptocurrency assets for the next three years.