Kim Kardashian has accepted a $1.26 million fine from the Securities and Exchange Commission (SEC) after a court case regarding her illegal promotion of the EthereumMax (EMAX) cryptocurrency on Instagram. The case marks the highest-profile cryptocurrency legal action to date.
The reality TV star and businesswoman advertised the purchase of EthereumMax tokens to her 331 million Instagram followers, but failed to disclose the payment of $250,000 that she received for the post. Kardashian agreed to pay the fine in penalties, disgorgement, and interest — and has been banned from crypto-endorsing for three years.
The EMAX Court Case
Kim Kardashian is not the only public figure to fall foul of crypto-endorsement rules. Athletes, Floyd Mayweather and Paul Pierce, similarly endorsed the EMAX tokens and were also targeted in the lawsuit that commenced last January. Part of the case related to an alleged ‘pump and dump’ scheme, in which the value of stock is artificially increased via improper means.
As for EthereumMax, which doesn’t exactly have the best reputation, it’s important to note that it has no connection with Ethereum, the second-largest cryptocurrency after Bitcoin.
Kardashian’s legal team said of the week’s events:
“Ms Kardashian is pleased to have resolved this matter with the SEC […] Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter.
“She wanted to get this matter behind her to avoid a protracted dispute […] The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits.”
Protect Yourself with Trend Micro Check
Be safe out there, folks! And be wary of get-rich-quick schemes, misinformation, and flashy endorsements. While the world of crypto may be new, many of these social engineering tactics have been around forever. Remember:
- Double-check people’s contact details — and URLs.
- Reach out to official websites and support pages directly for help if in doubt.
- NEVER use links or buttons from unknown sources! Use Trend Micro Check to detect scams with ease: Trend Micro Check is an all-in-one browser extension and mobile app for detecting scams, phishing attacks, malware, and dangerous links — and it’s FREE!
After you’ve pinned the Trend Micro Check extension, it will block dangerous sites automatically! (Available on Safari, Google Chrome, and Microsoft Edge).
You can also download the Trend Micro Check mobile app for 24/7 automatic scam and spam detection and filtering. (Available for Android and iOS).
Check out this page for more information on Trend Micro Check.
Given you’ll be required to enter personal information on these kinds of platforms, ID Security will also ensure you’re never the victim of a data breach.
Feel free to visit our previous cryptocurrency articles as well: highlights include a list of crypto red flags, and a guide to 4 common crypto scams.
And as ever, if you’ve found this article an interesting and/or helpful read, please do SHARE it with friends and family to help keep the online community secure and protected.
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