Kim Kardashian Was Fined $1.26 Million for Violating the (SEC) When Promoting Cryptocurrency Online

Kim Kardashian was reportedly charged a $1.26 million penalty for failing to state that she was paid by EthereumMax (EMAX) to promote their cryptocurrency product, therefore abridging the SEC's anti-touting laws. EMAX sells a digital crypto-coin. The U.S. Securities and Exchange requires any person who advertises this product to disclose if they are doing a paid advertisement, which Kardashian failed to do.

According to sec.gov, "The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion," said Gurbir S. Grewal, Director of the SEC's Division of Enforcement. "Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information."

Kim has over $300 million Instagram followers and was selected because she can reach a vast audience. Floyd Mayweather, Paul Pierce, DJ Khaled, and other celebrities are reportedly being investigated in connection with this situation.

Along with the fine, Kardashian is supposedly restricted from being able to endorse crypto-related products for several years.

Photo Credits: Kim Kardashian via Instagram