Kim Kardashian settles SEC charges over Instagram promoted crypto post disclosure for $1.26 million
Cryptocurrency is once again proving costly for celebrities involved in its marketing, this time with Kardashian paying fines over an issue of pay disclosure.
Kim Kardashian has found herself in the hot seat with the United States Securities and Exchange Commission and forced to pay up in regards to business she did with a cryptocurrency security in 2021. The celebrity had already found herself under scrutiny for using her Instagram to promote cryptocurrency, but the discovery of a payment from said crypto security drew action from the SEC. Kardashian was forced to pay around $1.26 million to settle the charges alongside further restrictive stipulations as a result.
Kim Kardashian’s settlement with the SEC was reported by CNBC, following official announcement of the charges by SEC Chairman Gary Gensler. According to Gensler and the SEC, Kardashian was accused of “unlawfully touting a crypto security” via her Instagram. In June 2021, Kardashian shared a post which a promotion for EthereumMax’s crypto asset. The post itself raised the brows of authorities and regulators. However, it was then further discovered that she failed to disclose a payment she received for the promotion. In the end, Kardashian agreed to pay around $1.26 million USD to settle the charges.
Kim Kardashian’s net value is reportedly around $1.8 billion, so $1.26 million might not seem like much for the reality TV star and ex-wife of Kanye West. However, there are further stipulations on the settlement. Not only is Kardashian forbidden from promoting further crypto assets for at least 3 years, but she will reportedly cooperate in a further ongoing investigation. Kardashian isn’t the first to get burned over cryptocurrency promotion. Matt Damon and Tom Brady, who famously promoted Crypto.com, got swindled alongside many other users when hackers cracked the platform’s security and drained a large number of crypto wallets, costing users a fortune in cryptocurrency theft before the Crypto.com owners paused transactions.
Nonetheless, though the fine might be a pittance for Kardashian, the restrictive stipulations and cooperation in investigations might be cause for the celebrity to think twice about engaging in cryptocurrency partnerships.
TJ Denzer posted a new article, Kim Kardashian settles SEC charges over Instagram promoted crypto post disclosure for $1.26 million