Kim Kardashian Settles With SEC Over Crypto Promotion After Failing To Disclose Amount of Compensation
Any celebrity or other individual who promotes a crypto asset security is required to disclose the nature, source, and amount of compensation they received in exchange for the promotion. After Kim Kardashian failed to disclose the amount on her promotion post, she has agreed to settle charges and pay pay USD 1.26 million.
Kim Kardashian has agreed to settle charges brought by the Securities and Exchange Commission and pay USD 1.26 million for promoting a cryptocurrency on social media without disclosing the payment she received for the plug. The SEC said on Monday that the reality TV star and entrepreneur has agreed to cooperate with its ongoing investigation. The SEC said Kardashian failed to disclose that she was paid USD 250,000 to publish a post on her Instagram account about EMAX tokens, a crypto asset security being offered by EthereumMax. Kim Kardashian to Pay a Huge Fine of $1.26 Million for Backing a Crypto Asset.
Kardashian's post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens. “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,” Gurbir Grewal, director of the SEC's division of enforcement, said in a prepared statement. Kim Kardashian Struggles To Walk in Super-Tight Glittery Silver Dress; Video Goes Viral.
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.