By Steve Goldstein
Kim Kardashian was fined $1.26 million by a federal regulator for touting a crypto security, part of a high-profile crackdown on celebrities pushing cryptocurrencies.
The Securities and Exchange Commission fined Kardashian over an Instagram post she made in 2021 about what’s called EMAX tokens, without disclosing her payment of $250,000 from the issuer, EthereumMax.
“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 in a statement.
Kardashian neither admitted nor denied the findings. The fine consisted of the disgorgement over her payment plus interest, as well as a $1 million penalty. She also agreed not to promote any crypto security for three years.
That token has plunged in value since her post in Instagram, according to data from Coinmarketcap.
Kardashian’s lawyer, Michael Rhodes, said in a statement that she fully cooperated with the SEC investigation and that the SEC agreement allows her to “move forward with her many different business pursuits.” Forbes estimates her net worth to be $1.8 billion.