Kim Kardashian to pay $1.26 million to settle SEC charges she illegally hyped cryptocurrency on social media
October 03, 2022
Always be careful when you buy something based on the advice of a celebrity or influencer, especially investments.
On social media, Kim Kardashian illegally touted cryptocurrency sold by EthereumMax without disclosing the payment she received for promoting it, the Securities and Exchange Commission said Monday.
Kardashian agreed to pay $1.26 million to settle the charges and cooperate with the SEC’s continuing investigation.
Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, the crypto asset security being offered by EthereumMax. Kardashian’s post on Instagram contained a link to the EthereumMax website, which gave instructions for potential investors to purchase EMAX tokens.
“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 Chair Gary Gensler said in a statement. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
Gensler said celebrities and others are required to disclose when and how much they’re paid to promote investing in securities.
Without admitting or denying the SEC’s findings, Kardashian agreed to pay the $1.26 million, including about $260,000, the amount of her promotional payment plus interest, and a $1 million penalty. Kardashian also agreed to not promote any crypto asset securities for three years.
See Gensler video below warning investors not to make investment decisions based only on the recommendations of a celebrity or influencer.
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