The Securities & Exchange Commission has charged Kim Kardashian for “touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.” Kim is accused of failing to disclose that she was paid $250,000 to promote the cryptocurrency asset. She agreed to settle the charges with the SEC and will pay $1.26 million in penalties, disgorgement and interest. Kim has also agreed to cooperate with the SEC’s ongoing investigation into this matter.
“Mrs. Kardashian is pleased to have resolved this matter with the SEC,” a lawyer for Kim told HollywoodLife. “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.”
Kim’s post about EthereumMax’s EMAX tokens included a link to the brand’s website. “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,” the SEC Chairman said. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial assets.” The Chairman also noted that celebrities are required to disclose how much they are paid when promoting security assets.
Kim’s $1.26 million payment is for a $1 million penalty and $260,000 in disgorgement, equaling the amount she was paid for the promotion. She has also agreed not to promote any other crypto security for three years, according to the SEC.
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