Kim Kardashian Slammed With $1.26 Million SEC Fine For Charges Linked to Instagram Crypto Promo The entrepreneur and reality star failed to disclose she received a $250,000 payment for promoting crypto platform EthereumMax.
One of Kim Kardashian's Instagram posts has the reality star in trouble with the Security Exchange Commission (SEC).
Kardashian has agreed to pay a $1.26 million fine to the SEC after failing to disclose she received a $250,000 payment to promote the crypto token EthereumMax on Instagram back in June 2021, according to CNN Business.
The post in question, which was shared to her Instagram Story and since deleted, read, "This is not financial advice but sharing what my friends told me about the Ethereum max token!" followed by several hashtags including " #ad," "#emax" and "#disrupthistory."
However, it was ruled by the SEC on Monday that "#ad" wasn't sufficient for disclosing her paid promotion and the SEC found her in violation of the anti-touting provision.
Kardashian was ordered to pay a $1 million fine and forfeit her $250,000 payout, plus interest. Additionally, she agreed to no longer promote any crypto-related assets for three years.
Following the news, SEC Chair Gary Gensler shared a press release on Twitter.
Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.— Gary Gensler (@GaryGensler) October 3, 2022
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.
"Ms. Kardashian is pleased to have resolved this matter with the SEC," according to a general statement from her attorney "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.