⚠️ @KimKardashian fined $1.26m over false cryptocurrency advertising claims.💼
— Walletor (@walletorapp) June 7, 2023
In October 2016, the famous Kardashian sister was fined $1.26 million. This lawsuit occurred because she was accused of breaking US law by marketing EthereumMax (EMAX) tokens. According to the SEC, Kardashian failed to disclose that she received a payment of $250,000 for featuring the token on her Instagram account.
Crypto projects employed media personalities as a crucial component of their extensive marketing campaigns. But when the bubble burst in 2022, many famous and powerful people got into trouble for promoting cryptocurrencies without doing enough research.
According to Bloomberg, United States District Judge Michael Fitzgerald turned down Kardashian’s request to dismiss the EMAX lawsuit. She faces accusations of falsely advertising the EMAX tokens. Judge Fitzgerald thinks that the posts that talked about EMAX tokens were false and misleading.
Investors sued Kim Kardashian in January 2022 for marketing EMAX tokens. The Securities and Exchange Commission (SEC) fined her later for failing to disclose the payment she received for endorsing EMAX.
Kardashian had to pay $1.26 million to settle the charges. This consisted of the $1 million she possessed, along with the $250,000 she received for promoting the token, and additional interest. Due to the crypto winter of 2022, many other celebrities got into trouble for supporting different crypto projects.