Kim Kardashian Hit With Hefty Fine for Undisclosed Instagram Cryptocurrency Promotion
- Oops!Something went wrong.Please try again later.
Let this be a warning to all to think twice before agreeing to promote crypto.
Kim Kardashian is over a million in the hole after the reality star failed to properly disclose an Instagram advertisement for cryptocurrency in the summer of 2021.
The Securities and Exchange Commission—which was created to enforce the law against market manipulation following the crash in 1929—levied charges against Kardashian after she neglected to reveal how much she was paid for the promotion of EthereumMax's EMAX tokens, which the SEC requires of those who are paid to push security investments (i.e. cryptocurrencies).
Kardashian had to pay the SEC not only the cost of her fees for the promotion—plus interest—but a one million dollar fine, totaling $1.26M.
“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,” SEC chairman Gary Gensler said in a news release, as reported by CNBC.
The publication also reports that while Kardashian is cooperating with an investigation by the SEC, she has neither admitted to nor denied their allegations.
The post dates back to June of 2021, where she asked her followers in the caption, "ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.” While she did reportedly flag the post as an ad, she never publicized what she was paid, as the SEC mandates.
Kardashian reportedly agreed to settle with the fine in order to escape a more thorough court process, according to her attorney Michael Rhodes, who told DailyMail.com: "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."
Duncan Levin, who also represented con artist Anna Delvey, explained to CNBC that the settlement also allowed the SEC to make an example of the Keeping Up With the Kardashians star. “The SEC is interested in sending a message to other potential celebrity endorsers of securities, to make sure their posts are not misconstrued as financial advice,” he said.
So let this be a warning to all: crypto is not to be messed with!
More News:
