EMAX Promotion Gone Wrong? Kim Kardashian Charged $1.26M Amidst Crypto Security Promo
Reality star Kim Kardashian gets charged by the SEC for promoting EthereumMax crypto security.
The "Keeping up with the Kardashians" star was called by the Securities and Exchange Commission amidst charges that she "unlawfully touted a cryptocurrency" without disclosing that she was being paid for the promotion.
A recent statement by Gary Gensler, chairman of the Securities and Exchange Commission was announced on the SEC's official Twitter page.
"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," The SEC wrote in their statement. "We encourage investors to consider an investment's potential risks and opportunities in light of their own financial goals."
Today we announced charges against Kim Kardashian for promoting a crypto security offered by EthereumMax without disclosing the payment she received for the promotion.
— U.S. Securities and Exchange Commission (@SECGov) October 3, 2022
Kardashian agreed to settle the charges, pay $1.26 million, and cooperate with the investigation.
Additionally, the beauty mogul will not be able to promote any crypto asset securities for the next three years.
'EMAX' Promotion Gone Wrong
In a settlement agreement released by the SEC, Kim Kardashian will be paying $1.26 million for the charges linked to her promotion of a cryptocurrency called EthereumMax, commonly known as EMAX. According to the SEC, the reality star had pitched EMAX to investors as a disruptive new cryptocurrency.
"The Kardashians" star was one of several celebrities, along with renowned boxer Floyd Mayweather and former professional basketball player Paul Pierce, who used their fame to hype the crypto asset and got involved in a controversial lawsuit over their endorsements.
Kim Kardashian's Statement on SEC Charges
Amidst the cryptocurrency promotion gone wrong, the "SKIMS" founder will pay the settlement without admitting to or denying the SEC's findings. According to Yahoo, a spokesperson for the reality star tells them that Kim was fully cooperative regarding the charges.
"Ms. Kardashian is pleased to have resolved this matter with the SEC. Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter. She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits."
Kim Kardashian has been known for paid promotion, as the reality star revealed in 2010 that she makes more money off of one sponsored Instagram post than one season of "Keeping up with the Kardashians".
