Kim Kardashian Fined for Crypto Endorsement Kiplinger Kiplinger is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Here's why you can trust us.

Kim Kardashian s $1 3 Million Crypto Fine Is a Warning to Investors

The crypto sector remains rife with scams and bad actors, and undislosed payments like Kardashian's. Here's what to avoid. (opens in new tab) (opens in new tab) (opens in new tab) Newsletter sign up Newsletter (Image credit: Getty Images) By Kiplinger Staff published 4 October 2022 Kim Kardashian, the reality TV star, paid $1.26 million to settle charges related to her online promotion of the EthereumMax digital token, the U.S. Securities and Exchange Commission said Monday. Kardashian failed to disclose a $250,000 payment to post on her Instagram account about EMAX tokens, the digital asset associated with EthereumMax (a crypto project unrelated to Ethereum, the second largest crypto token). Instagram influencers often fail to disclose paid posts, but Kardashian ran afoul of federal securities laws that explicitly require celebrities or others to disclose details about compensation they receive from such promotions. In addition to the charges, SEC Chairman Gary Gensler posted a video with guidelines on how to avoid crypto scams, questionable promotions and report fraud:

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Profit and prosper with the best of Kiplinger's expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of Kiplinger's expert advice - straight to your e-mail. Sign up Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn't mean those investment products are right for all investors.October 3, 2022See more

Cryptocurrency: Stay In? Get Out? How to Decide?

Steer Clear of Celebrity Endorsements

It's not the first time a famous face has been used to shill for a crypto project. Everyone from Matt Damon to Steph Curry have endorsed projects. But EthereumMax appears to have drawn additional scrutiny. In addition to the SEC action, a class action suit filed in California federal court alleges Kardashian, boxer Floyd Mayweather, Jr., and former NBA player Paul Pierce of making misleading and false statements in promoting EthereumMax Celebrity-endorsed crypto scams are a real problem. In June, investment bank Santander reported cases of crypto scams in the UK had surged 61% year-over-year, and the average value of a scam increased 65%, an indication that scammers had become more successful in terms of both the number of crimes committed, and an ability to steal more cash from victims.

How to Report Crypto Fraud

In addition to taking steps to protect your digital currency, the FTC offers these resources to file crypto-related fraud complaints:the FTC at ReportFraud.ftc.govthe Commodity Futures Trading Commission (CFTC) at CFTC.gov/complaintthe U.S. Securities and Exchange Commission (SEC) at sec.gov/tcrthe Internet Crime Complaint Center (IC3) at ic3.gov/Home/FileComplaintthe cryptocurrency exchange company you used to send the money Explore More Scams Kiplinger Staff Latest 15 States That Tax Military Retirement Pay (and Other States That Don't) retirement Taxes on military retirement pay vary from state-to-state. How generous is your state when it comes to helping retired veterans at tax time? By Sandra Block • Published 10 November 22 Finding Peace of Mind With Your Retirement Income Even in tough times, you can secure retirement income that lets you maintain your lifestyle, lasts a lifetime, adjusts for life events and leaves a legacy for the kids. By Jerry Golden, Investment Adviser Representative • Published 10 November 22 You might also like Beware the Caller From "The Government": It's a Scam Scams Scammers' persistence is matched only by their insolence: They even try to impersonate the very agencies trying to stop their grift. By Elaine Silvestrini • Published 11 August 22 The Best Way to Protect a Parent from Scammers Scams Adult children worried about their parents' ability to spot and avoid fraud have several options to help protect them, including a durable power of attorney, a guardianship and a revocable trust. Which might be best for your family? By James J. Ferraro, JD • Published 25 July 22 How to Avoid a Summer of Scams – Expert Tips to Help Aging Parents Scams Financial professionals share their top tips to help avoid becoming a statistic in a summertime wave of identity theft, account hacks and telemarketing fraud. By Pam Krueger • Published 13 July 22 Penny Stocks: Why You Should Always Stay Away Scams With the exception of some large foreign firms, investors should generally avoid stocks that trade over-the-counter. By Dan Burrows • Published 18 August 21 Keep Momma Away from This Financial Adviser Scams When a family member wants to be your financial adviser, watch out! By H. Dennis Beaver, Esq. • Last updated 16 July 21 Beware of Gift Card Scams Scams Threatening calls that you will be arrested or your electricity will be turned off can sound so real. But don't go running out to buy a gift card to keep your lights on. Learn how the fast-changing gift card scam works so you'll be ready if your phone rings. By H. Dennis Beaver, Esq. • Last updated 27 June 21 Scam Alert: 4 Types of Fraud That Target the Elderly (and How to Beat Them) Scams Scams target people of all ages, but the most vulnerable tend to be older adults - and the money they lose can have a big impact on their retirement. According to the National Council on Aging, seniors lose an estimated $3 billion each year to financial scams! By Tony Drake, CFP®, Investment Advisor Representative • Last updated 10 June 21 How to Get Hacked and Become a Victim of Identity Theft Scams Yes, online security can be a drag, but if you're tempted to click on that fun Facebook quiz or skip your phone update just this one time, here's what could happen. By H. Dennis Beaver, Esq. • Published 12 March 21 View More ▸ kiplinger About Us (opens in new tab) Terms and Conditions (opens in new tab) Privacy Policy (opens in new tab) Cookie Policy (opens in new tab) Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site.
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