Star Kim Kardashian will pay $ 1.26 million to end the SEC’s lawsuit for advertising a crypto token without disclosing that she was paid for the promotion.
The SEC said Monday that Kardashian was paid $ 250,000 to post EMAX tokens, a cryptocurrency offered by EthereumMax, on her Instagram account.
Kardashian did not admit or deny the regulator’s allegations under the plea deal, in which she agreed not to advertise any digital assets for three years. The SEC had previously warned celebrities advertising cryptocurrencies that they need to make it clear to their followers if they are getting paid. “This case reminds us that when celebrities or influencers support investment opportunities, including cryptocurrencies, it doesn’t mean these investment products are suitable for all investors,” said SEC President Gary Gensler. “We encourage investors to consider potential risks and opportunities of an investment in light of their financial objectives.”
In 2018, the US regulator fined boxer Floyd Mayweather and music producer DJ Khaled for failing to disclose payments received for advertising initial coin offerings or ICOs – a popular way for crypto projects to generate advertising and collect capital.
Kardashian, which recently launched own private equity with a former partner of Carlyleput “#AD” at the bottom of the post in 2021, according to the SEC but despite that, investors were unaware that she was being paid for the announcement.