U.S. Securities and Exchange Commission (SEC) has fined U.S reality T.V star Kim Kardashian $1.26 million for violating its rules by promoting a crypto asset.
SEC stated that Kim promoted a crypto security asset offered and sold by EthereumMax without making the necessary disclosure that she was paid to promote it.
The post shared by the reality T.V star contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.
The agency specified that Kardashian should have disclosed a $250,000 payment she received to publish a post about EthereumMax’s EMAX tokens on her Instagram account.
In a statement made by SEC chairman Gary Gensler via his Twitter handle, it reads “Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.
“This case is a reminder that, when celebrities/influencers endorse investment apps, including crypto-asset securities, it doesn’t mean that those investment products are right for all investors”.
Gary Gensler also separately posted a video on Twitter about the settlement, stating that celebrity endorsements should not be construed as financial advice.
Reacting to the fine, Kim Kardashian provided the following statement about the charges and the settlement via a statement made by her lawyer.
It reads “Ms. Kardashian is pleased to have resolved this matter with the SEC. Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter.
“She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits”
The settlement reached with the SEC by Kardashian includes a $260,000 payment that represents that original amount, plus interest, as well as $1 million in penalties.
