Kim Kardashian has agreed to pay a $1.26 million fine after federal regulators said she unlawfully promoted a cryptocurrency on Instagram without disclosing the sum she was paid for the promotion, Securities and Exchange Commission officials announced Monday morning.
Federal regulators said the reality TV star failed to disclose she was paid $250,000 to publish an Instagram post about EMAX tokens, a crypto asset offered by EthereumMax.
She shared the post in June last year, asking her millions of followers: “ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.”
The post included a link to EthereumMax’s website, which had instructions for potential investors to purchase EMAX tokens, the SEC statement said.
In doing so, she violated the anti-touting provision of federal securities law, it said.
Kardashian agreed to pay $1.26 million in penalties, which includes her promotional payment & to cooperate with the commission's investigation “without admitting or denying the SEC’s findings.”
She also agreed to not promote any crypto assets for 3 years, according to officials.
“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,” SEC Chair Gary Gensler said. “We encourage investors to consider an investment’s potential risks & opportunities in light of their own financial goals.”
An attorney for Kardashian said the star is “pleased to have resolved this matter with the SEC.”
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Source: NBC News
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