Kim Kardashian has agreed to pay $1.26 million to settle charges relating to a post about a cryptocurrency company she shared on Instagram without disclosing how much she'd been paid to do so, reports Business Insider.
The reality TV star had failed to disclose that she was paid $250,000 to publish a post about EMAX tokens, a crypto asset security sold by EthereumMax, the Securities and Exchange Commission said in a statement on Monday.
The post on her Instagram story, from June 2021, contained a link directing her followers to the company's website. She was among many celebrities touting the token.
"Are you guys into crypto????" the post read. "This is not financial advice but sharing what my friends just told me about the Ethereum Max token!"
"A few minutes ago Ethereum Max burned 400 trillion tokens- literally 50% of their admin wallet giving back to the entire E-Max community," the post read.
The SEC announced on Monday that Kim had agreed to the settlement and to cooperate with the ongoing investigation, without admitting or denying the agency's findings.
The SEC said that Kardashian had violated the anti-touting provision of the federal securities laws.
Her settlement included $250,000 in disgorgement for the original payment she was given, along with $10,000 in interest, and a $1 million penalty. She also agreed to not promote any crypto asset securities for three years, the SEC said.
"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. "Ms Kardashian's case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities."
