Prominent social media influncer Kim Kardashian will pay $1.26m for unlawfully touting crypto currency on Instagram and not disclosing her $250,000 fee
Kimberly Kardashian, 41, was fined by the SEC for failing to disclose to the public that she was paid to promote Ethereum Maxin June 2021
Kardashian agreed to pay $1.26m to settle with SEC over failing to disclose she was pain $250,000 to promote crypto on Insta
She posted on her Instagram story promoting the crypto tokens and adding the hashtag ‘AD’
‘This isn’t financial advice, but sharing what my friends just told me about the Ethereum Max,’ she said
SEC securities laws state that celebrities must declare when and how much they are paid to promote crypto
Kardashian agreed to pay the fine, she is also banned from crypto-promoting jobs for three years
Her attorney said his client is ‘pleased to have resolved the matter’
SEC has released a video warning members of the public not to invest in something purely because a celebrity has endorsed it
Kim Kardashian has been fined $1.26million by the SEC for failing to disclose that she was paid $250,000 to promote a cryptocurrency on Instagram.
In June 2021, Kardashian promoted the cryptocurrency Ethereum Max on her Instagram story.
‘Are you guys into crypto? This is not financial advice but sharing what my friends just told me about the Ethereum Max Token!
‘A few minutes ago Ethereum Max burned 400 Trillion Tokens – literally 50% of their admin wallet giving back to the entire E-Max community.
‘Kardashian added the hashtag #AD, which signaled the post was paid for.
She however did not share that she’d been paid $250,000 for the post – which the SEC says was a violation of securities laws.
Now, Kardashian – who is worth over $1billion – must refuse crypto-promoting jobs for three years.
In a statement announcing Kardashian’s fine on Monday, 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.
Ms. Kardashian is pleased to have resolved this matter with the SEC.
Attorney for Kardashian
‘The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion.
‘Investors are entitled to know whether the publicity of a security is unbiased, and Kardashian failed to disclose this information,’ said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.
The SEC has also released a video warning members of the public not to invest in something purely because a celebrity has endorsed it.
Kardashian’s attorney Michael Rhodes made the satement that: ‘Ms. Kardashian is pleased to have resolved this matter with the SEC.
‘Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter.
‘She wanted to get this matter behind her to avoid a protracted dispute.
‘The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits.’
No other Kardashians were named in the SEC complaint. The famous family is known to promote an array of products on social media for handsome payouts.
Flat tummy tea, vitamins and designer handbag giveaways pepper the family’s Instagram feeds.
In recent years, Kim – who is estimated to be worth $1.8billion – has focused more on promoting her own brands and collaborating with others.
The reality TV star makes most of her income through her brands KKW Beauty and Skims, her underwear and loungewear label.
She recently partnered with Dolce and Gabbana to produce a collection and fashion show at Milan Fashion Week, and co-founded the private equity firm Skky Partners.
Kardashian, 41, is the latest celebrity to be fined for their promoting of cryptocurrency.
In November 2018, professional boxer Floyd Mayweather Jr. and music producer Khaled Khaled, known as DJ Khaled, for failing to disclose payments they received for promoting investments in Initial Coin Offerings (ICOs). These are the SEC’s first cases to charge touting violations involving ICOs.Floyd Mayweather Jr., DJ Khaled. in the end Mayweather agreed to pay $615,000 in penalty and interests. Khalid paid $153,000.
Other celebrities have all been fined in the past including actor Steven Segal who paid $1m inpenalties.