Kim Kardashian is hit with $1.26m SEC charge for unlawfully touting crypto currency on Instagram and not disclosing her $250,000 fee
- Kim Kardashian was fined by the SEC for failing to disclose to the public that she was paid $250,000 to promote Ethereum Max in June 2021
- She posted on her Instagram story promoting the crypto tokens and adding the hashtag ‘AD’
- ‘This isn’t financial advice, but sharing what my friends just told me about the Ethereum Max,’ she said
- SEC securities laws state that celebrities must declare when and how much they are paid to promote crypto
- Kardashian has agreed to pay a $1.26million fine and to refuse crypto-promoting jobs for three years
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Kim Kardashian has been fined $1.26million by the SEC for failing to disclose that she was paid $250,000 to promote a cryptocurrency on Instagram.
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.
She however did not share that she’d been paid $250,000 for the post – which the SEC says was a violation of securities laws.
Now, Kardashian – who is worth over $1billion – must refuse crypto-promoting jobs for three years.
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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
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
The SEC released this order against Kardashian on Monday morning
She has not commented on the SEC case, but agreed to the the terms of the settlement.
In a statement announcing Kardashian’s fine on Monday, SEC Chair Gary Gensler said: ‘Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.
‘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 promotio.
‘Investors are entitled to know whether the publicity of a security is unbiased, and Kardashian failed to disclose this information,’ said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.
The SEC has also released a video warning members of the public not to invest in something purely because a celebrity has endorsed it.
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