Kim Kardashian fined $1.26 million for cryptocurrency fraud   

He had received $250,000 to promote EMAX tokens

Earlier this year we told you that Kim Kardashian and boxing legend Floyd Mayweather were embroiled in a cryptocurrency scam that resulted in…legal trouble. Now, it’s been announced that Kim Kardashian is being ordered to pay $1.26 million to settle charges filed by the US Securities and Exchange Commission (SEC).

The whole thing is about a crypto ad that the American TV personality had posted on her Instagram Stories. Specifically, Kardashian had received $250,000 to promote EthereumMax’s EMAX tokens, but never disclosed to her followers that this was a paid promotion.

The SEC ruled, then, that Kardashian violated the provision against advertising securities. She neither admitted nor denied the charges, but agreed to pay the $1 million fine and about $260,000 in restitution, which the SEC said covers the advertising fee she received and prejudgment interest. In addition, Kardashian pledged not to promote cryptocurrencies again for three years.

On the occasion of this news, the head of the SEC, Gary Gensler, said:

This case is a reminder that when celebrities or influencers endorse investment opportunities, including cryptocurrencies, this does not mean that the investment products in question are suitable for all investors. We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial goals.