SEC fines Kim Kardashian $1.26M for touting crypto token without disclosing stake

The Securities and Exchange Commission charged Kim Kardashian $1.26 million for promoting a cryptocurrency asset without disclosing being paid to promote it.

Kardashian promoted EthereumMax tokens on her Instagram account without disclosing that she had been paid $250,000 to post about the cryptocurrency. The influencer agreed to settle with the SEC over the action but did not admit to or deny the regulator's allegations in settling the case.

"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 Chairman Gary Gensler in a press statement. "We encourage investors to consider an investment's potential risks and opportunities in light of their own financial goals."

"Ms. Kardashian's case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities," Gensler added.