Kim Kardashian hit with $1.26m SEC fine for crypto promotion violations
Celebrity influencer Kim Kardashian has been fined $1.26 million by the US Securities and Exchange Commission (SEC) for violating the anti-touting provision of the US federal securities laws.
SEC charges Kim K $1.26m for failing to disclose payment for crypto asset promo
The SEC says Kardashian was paid $250,000 to publish a post on her Instagram account about EMAX tokens, a crypto asset being offered by EthereumMax, but failed to disclose the payment she received for the promotion. The post contained a link to the firm’s website, where potential investors could purchase EMAX tokens.
Gurbir Grewal, director of the SEC’s division of enforcement, says: “The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source and amount of compensation they received in exchange for the promotion.”
Without admitting or denying the SEC’s findings, Kardashian agreed to pay the aforementioned $1.26 million, including approximately $260,000 in disgorgement, which represents her promotional payment, plus prejudgment interest, as well as a $1,000,000 penalty.
Kardashian also agreed to not promote any crypto asset securities for three years.
SEC chair Gary Gensler says the case is a reminder that when influencers endorse investment opportunities, “it doesn’t mean that those investment products are right for all investors”.
