{"id":67995,"date":"2022-10-03T15:30:12","date_gmt":"2022-10-03T12:30:12","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=67995"},"modified":"2025-09-07T11:40:10","modified_gmt":"2025-09-07T08:40:10","slug":"sec-accuses-kim-kardashian-of-illegal-promotion-of-ethereummax","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-accuses-kim-kardashian-of-illegal-promotion-of-ethereummax\/","title":{"rendered":"SEC accuses Kim Kardashian of illegal promotion of EthereumMax"},"content":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) has accused model and actress Kim Kardashian of unlawful promotion of the EthereumMax altcoin (EMAX).<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today <a href=\"https:\/\/twitter.com\/SECGov?ref_src=twsrc%5Etfw\">@SECGov<\/a>, we charged Kim Kardashian for unlawfully touting a crypto security.<\/p>\n<p>This case is a reminder that, when celebrities \/ influencers endorse investment opps, including crypto asset securities, it doesn\u2019t mean those investment products are right for all investors.<\/p>\n<p>\u2014 SEC Chair Gary Gensler Archive (@GenslerArchive) <a href=\"https:\/\/twitter.com\/GenslerArchive\/status\/1576897535427448832?ref_src=twsrc%5Etfw\">October 3, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div>\n<\/figure>\n<p>According to the agency, the celebrity did not disclose that she received $250 000 for Instagram posts about security tokens offered by EthereumMax. Kardashian&#8217;s post contained a link to the project&#8217;s site, where potential investors received instructions on buying EMAX.<\/p>\n<p>In doing so, she violated the federal Securities Act&#8217;s prohibition on advertising without disclosure of the nature, source, and amount of compensation received in exchange for promotion.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cInvestors have the right to know whether a promotion of a security is objective,\u201d the SEC said.<\/p>\n<\/blockquote>\n<p>Kardashian will pay $1.26 million in fines, interest and disgorgement of ill-gotten gains. She also agreed not to promote any digital assets for three years.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis case reminds us that celebrity-endorsed investment opportunities do not necessarily suit all investors,\u201d said Gensler.<\/p>\n<\/blockquote>\n<p>The EthereumMax <a href=\"https:\/\/u1f987.com\/en\/news\/floyd-mayweather-promotes-ethereummax-ahead-of-logan-paul-fight\">has become widely known<\/a> in the spring of 2021. On May 26, a promotional post on Twitter by former NBA star Paul Pierce appeared. In the days that followed, the price of EMAX reached a peak, after which it fell more than 80% in 11 days.<\/p>\n<p>In January 2022, a lawsuit was filed in the U.S. District Court for the Central District of California against Kardashian, former boxing star Floyd Mayweather and eight others. Investors <a href=\"https:\/\/u1f987.com\/en\/news\/lawsuit-against-floyd-mayweather-and-kim-kardashian-over-ethereummax-promotion\">accused them of conspiring<\/a> with project leaders Steve Gentile and Giovanni Perone to mislead about control of the majority of tokens.\u00a0<\/p>\n<p>In August, lawyers attempted <a href=\"https:\/\/u1f987.com\/en\/news\/kim-kardashians-lawyers-seek-dismissal-of-ethereummax-advertising-lawsuit\">to dispute the class-action lawsuit<\/a> against Kardashian for promoting EthereumMax. The defense argued that there was insufficient proof that her Instagram posts alone spurred investors to invest in the token.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news on our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) has accused model and actress Kim Kardashian of unlawful promotion of the EthereumMax altcoin (EMAX).<\/p>\n","protected":false},"author":1,"featured_media":67996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1464,516,1415,36,128],"class_list":["post-67995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-accusations","tag-advertising","tag-celebrities","tag-regulation","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/67995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=67995"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/67995\/revisions"}],"predecessor-version":[{"id":67997,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/67995\/revisions\/67997"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/67996"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=67995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=67995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=67995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}