Regulators say the reality TV star has been promoting a cryptocurrency on Instagram without telling her fans she was paid to do so.
LOS ANGELES — Kim Kardashian has agreed to pay $1.26 million to settle Securities and Exchange Commission fees for promoting a cryptocurrency on Instagram, without disclosing that she paid her $250,000 to do so became.
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 to publish a post on her Instagram account via EMAX token, a crypto asset security offered by EthereumMax.
Kardashian’s post included a link to the EthereumMax website, which provided instructions for potential investors to buy EMAX tokens.
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“Federal securities laws require that any celebrity or other person promoting a crypto security must disclose the type, source and amount of compensation received in return for the promotion,” says Gurbir Grewal, Director the SEC’s Enforcement Division. said in a prepared statement.
Kardashian has agreed not to endorse cryptocurrency securities for three years.
“MS. Kardashian is pleased to have resolved this matter with the SEC. Kardashian has cooperated fully with the SEC from the outset and remains willing to do everything in her power to assist the SEC on this matter. She wanted “putting this matter behind her to avoid a protracted dispute. The agreement she has reached with the SEC allows her to do so so that she can advance her many diverse business activities,” an attorney for Kardashian said in a statement .
While Kardashian is known for reality TV and currently appears in The Kardashians on Hulu, she is also a successful businesswoman. Their brands include SKIMS, which offers shapewear, loungewear and other products, and a skincare line called SKKN.
Cryptocurrencies are receiving increasing attention from Congress. The latest bipartisan proposal came in August from Sens. Debbie Stabenow, D-Mich., and John Boozman, R-Ark. It would hand over Bitcoin and Ether regulation authority to the Commodities Futures Trading Commission.
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Bills proposed by other members of Congress and consumer advocates have proposed giving powers to the Securities and Exchange Commission.
This year, crypto investors have seen prices plummet, companies disappear overnight with assets and jobs, and some firms have been accused by federal authorities of operating an illegal securities exchange.
https://www.kvue.com/article/news/nation-world/kim-kardashian-crypto-fine/507-09be5c3d-21d3-491b-b343-84a8c1fb86e9 Kim Kardashian Crypto Settlement With SEC: Star Pays $1.26M