The Securities and Exchange Commission (SEC) has accused fashion model and actress Kim Kardashian of illegal advertising of the altcoin EthereumMax (EMAX).
According to the agency, the celebrity did not unveil she had received $250,000 for her Instagram posts about security tokens offered by EthereumMax. The Kardashian post contained a link to the project’s website, where potential investors received instructions on how to buy EMAX.
When doing so, she violated the federal Securities Act to prohibit advertising without disclosing the nature, source, and amount of compensation received in exchange for the promotion.
According to the watchdog:
“Investors have a right to know if an advertisement for a security is fair.”
Kardashian will pay $1.26 million in fines, interest, and illegal profits.