Kim Kardashian agreed to settle with the SEC over allegations that she had promoted a "crypto asset security" without disclosing how much she had been paid, or when. In June 2021, Kardashian posted an ad to her Instagram story where she claimed that she was "sharing what my friends just told me about the Ethereum Max token". Although she did include "#ad" in the post, she did not disclose to her 251 million followers that she was being paid $250,000 to post it — a requirement if they decide to post ads pertaining to securities investments. She will pay $1.26 million in the settlement.
SEC Chair Gary Gensler said, "Ms. Kardashian's case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities".
Kardashian is also named in an ongoing class action lawsuit pertaining to the EthereumMax project, along with Floyd Mayweather and Paul Pierce.