Kim Kardashian charged $1.26 million for promoting a cryptocurrency -
Kim Kardashian charged $1.26 million for promoting a cryptocurrency
Kim Kardashian has agreed to settle charges brought by the Securities and Exchange Commission and pay $1.26 million for promoting a cryptocurrency on social media without disclosing the payment she received for the plug.
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The SEC said 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 $250,000 to publish a post on her Instagram account about EMAX tokens, a crypto asset security being offered by EthereumMax.
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.
“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,” Chair Gensler added.
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