Kim Kardashian found herself in hot water back in June 2021 after promoting the cryptocurrency EthereumMax on her Instagram account. Despite labeling her post with hashtags like “#ad” and “#emax” and clarifying that it was not financial advice, it was considered a violation of federal securities laws as she failed to disclose that it was a paid promotion by EthereumMax for $250,000.
The Securities and Exchange Commission (SEC) launched an investigation into Kardashian’s actions, citing that her endorsement misled investors and breached anti-touting regulations. The SEC Chair, Gary Gensler, emphasized the importance of investors assessing the risks and rewards of investments, especially when influenced by celebrity endorsements.
As a result of the investigation, Kim Kardashian agreed to pay a hefty $1.26 million fine to settle the civil charges brought by the SEC. This amount covers the damages from the promotion along with interest. Additionally, she pledged to abstain from promoting cryptocurrencies publicly for the next three years to comply with the terms of the settlement.
In response to the settlement, Kardashian’s legal team issued a statement expressing her cooperation with the SEC throughout the process and her eagerness to move on from the issue to focus on her various business ventures.
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.https://t.co/BxhFaBDRkF
— CNN (@CNN) October 3, 2022
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