Kim Kardashian Pays SEC $1.2 Million In Ethereum Max Case

Influencer and socialite Kim Kardashian has been charged with promoting a “crypto security” called Ethereum Max, according to a Securities and Exchange Commission (SEC) press release. The celebrity has agreed to cooperate with the regulator’s investigation.

This isn’t the first time Kim Kardashian has had to file or settle lawsuits against her. may lay the groundwork for the actions of

Kim Kardashian has been out of crypto promotions for years

In late 2021, Kim Kardashian used her Instagram account to promote a project called EthereumMax and its native token, EMAX. The socialite was transparent with her followers, revealing her post was an advertisement, but this failed to deter her from pressing charges against the SEC.

Kim Kardashian did not disclose the payment she received for an Instagram post promoting Ethereum Max, according to the release. provided instructions for purchasing the Kardashian has over 300 million followers on her platform.

Her endorsement was therefore certain to influence the price of cryptocurrencies classified as “cryptocurrencies” by regulators. Kardashian was paid $250,000 to promote the project.

The celebrity has settled with the SEC and agreed to pay a $1.26 million fine that includes EthereumMax’s promotional costs. Additionally, the socialite has agreed to stop promoting “crypto securities” for the next three years and to cooperate with the SEC’s ongoing investigation.

Regulators allege Kardashian violated a federal securities law no-advertisement clause, citing her name recognition and fame as an example. says.

This case serves as a reminder that when celebrities and influencers endorse investment opportunities involving cryptocurrency securities, those investment products may not be suitable for all investors. Investors are encouraged to consider the potential risks and opportunities of their investments in light of their own financial objectives.

today @SECGovindicted Kim Kardashian for illegally promoting crypto-security.

This case serves as a reminder that when celebrities/influencers endorse investment opportunities involving cryptocurrency securities, it does not mean that those investment products are suitable for all investors.

— Gary Gensler (@GaryGensler) October 3, 2022

What is cryptographic security? SEC pushes its explanation

Further comments from SEC Director of the SEC Enforcement Division, Gurbir Grewal, argue that U.S. securities law is “clear” about insuring cryptocurrencies. In that sense he said:

Federal securities laws make it clear that celebrities and other individuals who promote cryptocurrency securities must disclose the nature, source, and amount of compensation received in exchange for the promotion.

However, the term “cryptographic security” was only recently introduced by the SEC. The regulator is now looking to increase its powers to oversee the entire cryptocurrency industry and has implemented the term as part of its description. As the SEC chairman alluded to, all cryptocurrencies except Bitcoin are security.

As Bitcoinist reported two months ago, Kim Kardashian is facing a class action lawsuit in the US for alleged involvement in a “Pump-and-Dump” scheme. Her attorneys have attempted to dismiss her charges against her, but have so far been unsuccessful.