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And More October 2, 2022 2 mins read

Kim Kardashian to Pay $1.26 Million to the SEC after Promoting a Crypto

And More ı By Rochdi Rais

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Kim Kardashian

Kim Kardashian’s enrollment in the crypto world has given her headache with federal regulators.

The reality TV superstar has settled Securities and Exchange Commission charges that she failed to disclose a payment she received for promoting a crypto asset on her Instagram feed, the agency announced Monday morning.

“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 right for all investors,” Gary Gensler, chairman of the SEC, said in a news release.

Kardashian, who is reportedly worth $1.8 billion, agreed to pay $1.26 million to settle the charges over promotion on Meta’s Instagram for EthereumMax’s crypto asset, the SEC said. She will also cooperate with an ongoing investigation and has agreed not to promote crypto securities for three years, the regulator added.

In a statement, a lawyer for Kardashian said she is pleased to have resolved the matter.

“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,” the statement said.

Kardashian shared to her 250 million plus Instagram followers, “ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.”

The SEC on Monday said Kardashian failed to report that she was paid $250,000 by EthereumMax, through an intermediary, to publish a post about EMAX tokens, a crypto asset offered by EthereumMax. 

“Congress passed a law many decades ago called the Securities Act, and it was to protect the public,” Gensler told CNBC’s “Squawk Box” on Monday morning.  “Part of that law said that if you tout a stock you have to disclose if you’re getting paid.”

Read the SEC’s settlement order here.

 

 

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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