Kim Kardashian Fined $1.26M for Unlawfully Promoting Cryptocurrency
The Securities and Exchange Commission (SEC) ordered Kim Kardashian to pay $1.26 million for unlawfully promoting a cryptocurrency on her Instagram account.
Kardashian was fined for promoting a cryptocurrency called EthereumMax (EMAX) without disclosing the fact that she'd been paid $250,000 for the advertisement. In the settlement, Kardashian agreed to pay $260,000 in disgorgement (her payment for the promotion plus interest) and a $1 million penalty. She also agreed to not promote any cryptocurrency for the next three years. In announcing the charges, the SEC's chairman said they were "a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors."
Kardashian's net worth is thought to be around $2 billion. Her lawyer told Axios that "Ms. 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."
The settlement was covered by sources across the political spectrum, many of which framed it as evidence of the SEC's willingness to crack down on celebrities who endorse cryptocurrencies.
Featured Coverage of this Story
From the CenterKim Kardashian to pay $1.26 million in crypto charges settlement
The U.S. Securities & Exchange Commission on Monday announced charges against Kim Kardashian for promoting a cryptocurrency without disclosing that she had been paid for the promotion. Kardashian has agreed to pay $1.26 million as part of a settlement.
The big picture: Federal securities regulators have been cracking down on celebrity crypto endorsements.
Details: Kardashian didn't disclose that she was paid $250,000 to publish an Instagram post about a crypto token called EMAX, in which Kardashian included a link to a related website and instructions for potential investors.
Under terms of the settlement, Kardashian agreed...
From the LeftKim Kardashian’s Instagram story just cost her $1.26 million
The crypto crackdown has come for Kim Kardashian.
The Securities and Exchange Commission (SEC) announced on Monday that the queen of influencers did a little too much influencing when it came to the EthereumMax (EMAX) token, which Kardashian promoted on her Instagram in June 2021. She’s agreed to pay $1.26 million and not promote crypto securities for the next three years.
The settlement shows that the SEC is ready, willing, and able to go after celebrity crypto endorsers. Many of them made plenty of money promoting what ended up being shady crypto schemes that quickly collapsed,...
From the RightSEC fines Kim Kardashian $1.26M for touting crypto token without disclosing stake
The Securities and Exchange Commission charged Kim Kardashian $1.26 million for promoting a cryptocurrency asset without disclosing being paid to promote it.
Kardashian promoted EthereumMax tokens on her Instagram account without disclosing that she had been paid $250,000 to post about the cryptocurrency. The influencer agreed to settle with the SEC over the action but did not admit to or deny the regulator's allegations in settling the case.
"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...