Kim Kardashian agreed to settle with the SEC over allegations that she had promoted a « crypto asset security » without disclosing that she had been paid. In June 2021, Kardashian posted an ad to her Instagram story where she claimed that she was « sharing what my friends just told me about the Ethereum Max token ». She did not disclose to her 251 million followers that she was being paid $250,000 for the post. She will pay $1.26 million in the settlement.
SEC Chair Gary Gensler said, « 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 ».
Kardashian is also named in an ongoing class action lawsuit pertaining to the EthereumMax project, along with Floyd Mayweather and Paul Pierce.
