American reality TV superstar Kim Kardashian has been indicted by the United States Securities and Exchange Commission (SEC) for promoting EMAX Token, the native currency of the EthereumMax protocol.

as it is contained in a Press release issued by the commission, Kim did not disclose that she was paid the sum of $250,000 for the promotion she posted on her Instagram account. As described by the SEC, the published promotion contained a link that directed visitors to a landing page where instructions on how to purchase the token can be obtained.

Kim neither admitted nor denied violating the anti-promotion provision of the federal securities laws. However, she agreed to pay the full sum of $1.26 million, including $260,000 as repayment to replace the payment she received for pretrial promotions and interest, and a $1 million penalty.

“This case is a reminder that when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it does not mean that those investment products are suitable for all investors,” said SEC Chairman Gary Gensler. “We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial objectives.”

The regulator said it is mandatory for celebrities to disclose the remuneration they received and that members of the public deserve to know. As per the sanctions placed on the celebrity, he also agreed not to promote any crypto assets for the next three years. In addition, he has agreed to cooperate with investigators as the case remains open.

The SEC has been known to crack down on celebrities for promoting fraudulent crypto tokens. In June 2020, professional boxing legend Floyd Mayweather was also accused for the promotion of the Centra Tech Initial Coin Offering (ICO) in 2017.

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