SEC charges Kim Kardashian with crypto promotion amounting to over $1.3 million
The feds are investigating Kim Kardashian for an Instagram post promoting cryptocurrency asset that critics claim is a pump-and-dump scam.
SEC regulators found Kardashian did not disclose a $250,000 payment from EthereumMax to publish the post about EMAX tokens on her Instagram feed.
Regulators, however, alleged that Kardashian was still unlawfully promoting the token even though her June 2021 post contained the hashtag "#ad.".
A $1.26 million fine was paid by Kardashian, who neither admitted nor denied the charges.
A statement from Kardashian's lawyer, Michael Rhodes, said the reality television star was fully cooperative in the case.
NASAA vice-chair Joe Rotunda says the Kardashian case is representative of the new challenge facing regulators as a result of "f-influencers."