Kim Kardashian, a reality TV star and model, reportedly got $250,000 for promoting EthereumMax but failed to report it to the authorities. The Securities and Exchange Commission has filed a complaint against her for a post that included a direct link to the EthereumMax website, which offered instructions for potential investors to buy EMAX coins.
Gary Gensler, SEC Chair expressed his concern by stating that this case serves as a warning that just because celebrities or other influential people support certain investment options, like securities backed by cryptocurrencies, doesn’t guarantee that those products are suitable for all investors.
As per the SEC’s ruling, Kim broke the federal securities laws’ anti-touting clause. She has agreed to pay $1.26 million in fine to break the law and settle things with the SEC. The $1.26 million is a collective amount which includes the sum of $250,000 she received for promoting EMAX tokens, a prejudgment interest and a $1 million penalty. This helps Kim, who is a billionaire, from admitting or contesting the SEC’s claims. She has also been banned by the agency from promoting any crypto asset securities for the next three years.
The second-largest cryptocurrency by market cap after Bitcoin, Ethereum, has absolutely nothing to do with EthereumMax. This isn’t the first time Kim has caused EthereumMax problems. Due to the lack of caution in their posts, Kim and Floyd Mayweather Jr. were sued in January by retail investors of EthereumMax for deceiving them that the tokens were connected to Ethereum.