The SEC penalized Kim Kardashian $1.26 million for failing to declare that she had received $250,000 to advertise a cryptocurrency on Instagram.
On her Instagram story in June 2021, Kardashian advertised the cryptocurrency Ethereum Max.
Are you two into cryptocurrency? This is merely what my pals recently informed me about the Ethereum Max Token; it is not financial advice.
“A few minutes ago, Ethereum Max burnt 400 trillion tokens, which is equivalent to handing back to the whole E-Max community 50% of their admin wallet.
“Kardashian used the hashtag #AD, indicating that the tweet was sponsored.
She hid the fact that she had received $250,000 for the position, which the SEC claims was against the law.
Kardashian, who is worth over $1 billion, must now turn down gigs promoting cryptocurrencies for three years.
‘Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law compels them to disclose to the public when and how much they are paid to advocate investing in securities,’ SEC Chair Gary Gensler said in a statement announcing Kardashian’s penalties on Monday.
Ms. Kardashian is happy that the situation has been addressed with the SEC.
According to the federal securities laws, any famous person or other person who promotes a cryptocurrency asset security is required to report the kind, source, and amount of payment they got in return for the promotion.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said that “investors have a right to know if the publicity of a securities is impartial, and Kardashian failed to provide this information.”
A video urging the public not to invest in anything just because a celebrity has supported it has also been produced by the SEC.
In a statement to DailyMail.com, Kardashian’s attorney Michael Rhodes said: “Ms. Kardashian is delighted to have addressed this issue with the SEC.”
“Kardashian completely cooperated with the SEC from the start and she continues to be eager to do anything she can to help the SEC in this case,” the SEC said.
She wanted to put this issue behind her in order to prevent a drawn-out argument.
“The settlement she struck with the SEC permits her to accomplish so so she may advance with her many business endeavors,”
The most recent celebrity to get a fine for supporting cryptocurrencies is 41-year-old Kim Kardashian.
Steven Segal, DJ Khaled, and Floyd Mayweather Jr. have all received fines in the past.
In the SEC lawsuit, no other Kardashians were mentioned. The renowned family is well recognized for using social media to promote a variety of goods in exchange for sizable payments.
The family’s Instagram accounts are filled with freebies of expensive handbags, flat belly tea, and vitamins.
Kim, whose net worth is estimated at $1.8 billion, has recently concentrated more on marketing her own products and working with other people.
The reality TV star derives the majority of her revenue from her underwear and loungewear company, Skims, and her KKW Beauty brand.
She co-founded the private equity business Skky Partners and most recently collaborated with Dolce & Gabbana to develop a collection and fashion presentation at Milan Fashion Week.