Kim Kardashian has to pay $1.26 million to the Securities and Exchange Commission (SEC) to settle civil charges against her after she advertised a crypto asset called EthereumMax on Instagram.
The SEC charged Kardashian with failure to disclose that she was paid $250,000 to publish her Instagram post.
Kardashian has also been ordered not to promote any crypto securities for three years. The celebrity was in violation of the anti-touting provision of federal security laws. In addition to the fine, she will also forfeit the $250,000 payment she received with interest.
SEC chair Gary Gensler said that just because a celebrity endorsed a crypto asset security it doesn’t make it right or safe or investors.
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean those investment products are right for all investors. We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals,” said Gensler.
Kardashian’s lawyers also issued a statement, “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.”
Kardashian had made the Instagram post on June 13, 2021 writing, “Are you guys into crypto? This is not financial advice but sharing what my friends told me about ethereum max token!”
According to the SEC, the reality tv star had 225 million Instagram followers at the time of the post.
Forbes estimates Kim Kardashian’s net worth to be at $1.8 billion which means the fine she is paying isn’t much of a setback for her at all realistically speaking.
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