Keeping Up With The SEC: Kim Kardashian Settled Unlawful Crypto Touting Case For US$1.26 Million

Celebrity Kim Kardashian has agreed to settle with the Securities and Exchange Commission a case involving her unlawfully touting a crypto asset on social media without disclosing she was paid to promote such. Without admission, the American socialite paid US$1.26 million to the regulatory body.

The anti-touting violation that Kardashian allegedly committed relates to her social media post promoting EMAX tokens, the crypto asset security being offered by EthereumMax. She failed to disclosed that she was paid US$250,000 to post the promotion on her Instagram account, as federal security laws require any individual to inform such compensation in exchange for publicity.

Screenshot of Kardashian’s Instagram story

“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.

The agency’s Division of Enforcement added that “investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”

Kardashian, along with boxer Floyd Mayweather and basketball pro Paul Pierce, is being sued separately in the Central District of California, with the suit characterizing said promotion of the digital asset as misleading. The complainant alleges that the defendants made false claims to their fans and followers in an effort to persuade them to buy into the cryptocurrency platform, which the accused then exited with significant gains once the tokens rose in value.

As per the suit, EthereumMax jumped by more than 1,370% after Kardashian promoted the token to her Instagram followers. Shortly after, though, the token plummeted over 98%, without ever recovering.

The US$1.26 million settlement includes approximately US$260,000 in disgorgement, which represents her promotional payment, plus prejudgment interest, and a US$1.0 million penalty.

Kardashian also undertakes not to promote any crypto asset securities for three years.


Information for this briefing was found via SEC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

SEC Lawyers Now Required To Get Commission Approval Before Launching Probes

The SEC has recently undergone a procedural overhaul that significantly curtails the autonomy of its...

Monday, February 3, 2025, 10:39:00 AM

SEC Slaps $3 Million Penalty on Former Wells Fargo Executive for Alleged Misleading Statements

The Securities and Exchange Commission (SEC) announced its settlement with Carrie L. Tolstedt, the former...

Wednesday, May 31, 2023, 10:52:00 AM

SEC Goes After Kraken, Sues Crypto Exchange for Failing to Register

San Francisco-based cryptocurrency exchange, Kraken, is facing legal action from the US Securities and Exchange...

Tuesday, November 21, 2023, 07:50:00 AM

Robinhood On SEC Issuing Wells Notice: “We’re Disappointed”

Shares of Robinhood Markets (NASDAQ: HOOD) saw a 2% decline in premarket trading, reacting to...

Monday, May 6, 2024, 09:14:12 AM

SEC Charges Stimwave CEO With $41 Million Fraud For A “Fake Piece Of Plastic” Implanted Into Patients

The Securities and Exchange Commission (SEC) has charged Laura Tyler Perryman, co-founder and former CEO...

Wednesday, December 20, 2023, 12:07:00 PM