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ANGELA WEISS/AFP via Getty Images

(NEW YORK) – The Securities and Exchange Commission on Monday indicted reality TV star Kim Kardashian for a message she posted promoting a crypto asset security sold by EthereumMax “without disclosing the payment ‘she received for the promotion’.

Kardashian will pay $1.26 million to settle the civil charges, the SEC said in its announcement.

The SEC alleged that Kardashian failed to disclose that she received $250,000 for posting to her Instagram account about EMAX tokens, the crypto asset security offered by EthereumMax.

“This case is a reminder that when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are suitable for all investors,” the chairman said. the SEC, Gary Gensler, in a press release.

“We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial objectives,” he added.

The $1.26 million settlement equals the payment Kardashian received for the promotion plus a $1 million penalty, the SEC said. Kardashian also agreed to give up promoting any crypto asset title for three years, the agency added.

Kardashian is among a number of celebrities named in a class action lawsuit filed last January in a U.S. District Court in California over allegations by investors that they suffered losses after the celebrities promoted cryptocurrency. This court case is ongoing.

The plaintiffs invested the money after “seeing numerous celebrity endorsements from EMAX,” the lawsuit said.

Kardashian filed a motion to dismiss the lawsuit last month, arguing that none of the investors claimed to have seen her promotional posts on Instagram.

The value of one EthereumMax coin fell 1.75% on Monday.

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