Kim Kardashian fined $1.26 million for promoting crypto

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Hollywood star Kim Kardashian has been fined by the US Securities and Exchange Commission (SEC) for promoting fake cryptocurrencies.

In the midst of the crypto frenzy in 2021, several well-known figures, such as sports stars, celebrities, singers and others are often partnered with a crypto project to encourage their promotional activities.

This has proven to work well because of the skyrocketing price of a crypto project token due to the role of a well-known influencer, but not infrequently it also ends in problems, as experienced by Kim Kardashian.

Kim Kardashian and the EthereumMax Token

According to a Block Works report, the famous US celebrity and influencer has paid a fine of US$1.26 million to the US SEC for promoting the Ethereum Max (EMAX) token in June 2021.

EthereumMax is an unknown token, poorly projected and its price is dead by depreciating by 99.99 percent.

That month, Kim Kardashian had promoted EMAX to her more than 225 million followers on Instagram, while keeping secret that she had been paid $250,000 for the promotion.

"Federal securities laws are clear that any celebrity or other individual who promotes securities crypto assets must disclose the nature, source and amount of compensation they receive in exchange for the promotion," said Gurbir Grewal, director of the US SEC's Division of Enforcement.

According to findings by financial services firm Morning Consult, approximately 54 million US adults viewed the promotion on Instagram. There are about 10 million who decided to invest in EMAX because of it.

About two weeks after the promotion, the token price fell more than 96 percent and continues to fall unstoppably.

EMAX has been considered a “junk” token that only moves because of a pump and dump scheme, without any value or fundamentals from the project that supports it.

Apart from receiving the fine, Kim Kardashian is also prohibited from promoting any crypto-security related projects within the next three years.

Besides Kim, other well-known figures have also experienced class action lawsuits related to EthereumMax, such as boxer Floyd Mayweather and several other celebrity promoters.

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