Kim Kardashian must pay .26m to settle SEC over crypto 0k on Instagram

Kim Kardashian must pay $1.26m to settle SEC over crypto $250k on Instagram

The SEC has fined Kim Kardashian $1,260,000 for failing to report that she was compensated $250,000 to promote a cryptocurrency on Instagram.

Kim Kardashian (pictured last week) has been fined $1.26million for promoting cryptocurrency on Instagram without telling her followers how much she was paid for it last June
Kardashian supported the cryptocurrency Ethereum Max on her Instagram story in June 2021.

‘Are you guys into crypto? This is not financial advise, but I wanted to share what my friends recently told me regarding the Ethereum Max Token!

‘Just a few minutes ago, Ethereum Max burnt 400 trillion tokens, essentially giving back 50 percent of their admin wallet to the whole E-Max community.

‘Kardashian appended the hashtag #AD, indicating that the post was sponsored.In June 2021, Kardashian promoted the cryptocurrency Ethereum Max on her Instagram story. 'Are you guys into crypto? This is not financial advice but sharing what my friends just told me about the Ethereum Max Token! 'A few minutes ago Ethereum Max burned 400 Trillion Tokens - literally 50% of their admin wallet giving back to the entire E-Max community. 'Kardashian added the hashtag #AD, which signaled the post was paid for it

She did not disclose, however, that she had been paid $250,000 for the position, in violation of securities regulations, according to the SEC.

Kardashian, whose net worth exceeds $1 billion, must now decline crypto-promoting positions for three years.

Kim Kardashian (seen last week) was fined $1.26 million for marketing bitcoin on Instagram without disclosing her compensation in June.

Kardashian supported the cryptocurrency Ethereum Max on her Instagram story in June 2021. Are you crypto enthusiasts? My buddies just told me about the Ethereum Max Token. This is not financial advise. A few minutes ago, Ethereum Max destroyed 400 Trillion Tokens, thus giving back 50 percent of their admin wallet to the whole E-Max community. The hashtag #AD added by Kardashian indicated that the post was sponsored.

Monday morning, the SEC released this order against Kardashian.

In a statement released on Monday announcing Kardashian’s penalties, SEC Chair Gary Gensler said: ‘Ms. Kardashian’s case also serves as a warning to celebrities and others that the law compels them to declare when and how much they are paid to encourage investment in securities.

Ms. Kardashian is relieved that this dispute has been resolved with the SEC.The SEC released this order against Kardashian on Monday morning

‘According to the federal securities laws, any celebrity or other individual who promotes a crypto asset security must disclose the kind, source, and amount of remuneration received in exchange for the promotion.

Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, stated, “Investors are entitled to know if the publicity of a securities is objective, and Kardashian failed to provide this information.”

The SEC has also released a video urging the public not to invest in something just due to a celebrity endorsement.

Michael Rhodes, Kardashian’s attorney, said in a statement to DailyMail.com: ‘Ms. Kardashian is delighted to have addressed this matter with the SEC.

“Kardashian has been totally cooperative with the SEC from the outset, and she is prepared to do whatever she can to assist the SEC in this matter.”

She desired to lay this topic to rest in order to avoid a lengthy dispute.

The arrangement she negotiated with the SEC permits her to do so, allowing her to pursue her various business endeavors.

Kardashian, 41 years old, is the most recent celebrity to be penalized for promoting cryptocurrencies.

Floyd Mayweather Jr., DJ Khaled, and Steven Segal were already penalized.

In the SEC’s complaint, no other Kardashians were mentioned. The famous family is well-known for promoting a variety of businesses on social media for substantial compensation.

The family’s Instagram is filled with advertisements for flat tummy tea, vitamins, and designer handbag giveaways.

Kim, who is reported to be worth $1.8 billion, has concentrated more on marketing her own brands and cooperating with others in recent years.

The majority of the reality television star’s income comes from her companies KKW Beauty and Skims, her underwear and loungewear label.

She recently collaborated with Dolce & Gabbana to develop a collection and fashion show during Milan Fashion Week, and she co-founded the private equity business Skky Partners.

»Kim Kardashian must pay $1.26m to settle SEC over crypto $250k on Instagram«

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