She’s finally in the clear now. Kim Kardashian has agreed to settle charges brought by the US Securities and Exchange Commission (SEC) and pay $1.26 million (€1.29m) in penalties for promoting a cryptocurrency on social media without disclosing the payment she received for it. Here’s what you need to know.
According to reports, the SEC said that the reality TV star and entrepreneur has agreed to cooperate with its ongoing investigation. The agency said Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, a crypto asset security being offered by EthereumMax.
Kim Kardashian Settles Payment In Crypto Promotion Controversy
Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens. Kardashian was one of many celebrities who were part of a crypto craze last year, which included intense interest in and advertising and funding of cryptocurrencies and their related technologies.
In June 2021, Kardashian posted an Instagram story inviting her 328 million followers to invest in EthereumMax. “This is not financial advice,” Kardashian wrote in her story. “But sharing what my friends just told me about the Ethereum Max token!” Among other hashtags, she included the word “ad.”
Gurbir Grewal, director of the SEC’s division of enforcement, said in a prepared statement: “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.”
Kardashian has agreed to not promote any crypto asset securities for three years. While Kardashian is well known for reality TV, currently appearing on The Kardashians on Hulu, she is also a successful businesswoman. Her brands include SKIMS, which has shapewear, loungewear and other products, and a skincare line called SKKN.
Cryptocurrencies are digital assets, such as Bitcoin, that can be bought and sold via cryptocurrency exchanges. Representatives for Kardashian and EtheriumMax didn’t immediately respond to requests for comment.
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