Image Source: Vogue
Kim Kardashian agreed to pay a $1.26 million fine to the Securities and Exchange Commission to settle civil charges after the reality TV star touted a crypto asset, EthereumMax, on Instagram.
The SEC charged Kardashian with failure to disclose that she was paid $250,000 to publish her Instagram post. In addition to paying the fine, she agreed to cooperate with the SEC’s ongoing investigation.
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” said SEC Chair Gary Gensler. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
Kardashian also agreed to not promote any crypto securities for three years.
The SEC found that Kardashian violated the anti-touting provision of the federal securities laws. Kardashian agreed to the order without admitting or denying the SEC’s findings.
The settlement includes a $1 million fine and forfeiting the $250,000 payment she received, plus interest.
Gensler tweeted that “any celebrity or influencer’s incentives aren’t necessarily aligned with yours.” He said the investing public shouldn’t confuse the skills of celebrities “with the very different skills needed to offer appropriate investment advice.”
Kardashian’s spokesperson did not immediately respond to a request for comment.