The celebrity star Kim Kardashian is again caught in controversy for making misleading statements while promoting a little-known cryptocurrency called Ethereum Max. The Securities and Exchange Commission (SEC) charged Kim Kardashian for touting on social media a crypto asset security offered and sold by Ethereum Max.
She has been charged for not disclosing a $250,000 payment she received for the promotion on her Instagram account. The SEC stated that Kim Kardashian agreed to settle the charges and pay $1.26 million in penalties.
SEC Chair Gary Gensler warned the followers citing the incident saying, “This case is a reminder that, when influencers and celebrities endorse investment opportunities including crypto asset securities, it doesn’t mean that those investment products are right for all investors.”
He added that investors must consider and speculate on potential risks and opportunities in light of their own financial goals. In this particular case, Kardashian shared a post on Instagram containing a link to the EthereumMax website which provided instructions for potential investors to buy EMAX tokens.
Also Read: SEC Charges Crypto Influencer Ian Balina for Selling ICO Tokens
