Kim Kardashian has agreed to cough up more than $1 million to settle SEC charges. This is all because she allegedly failed to disclose a payment she received for promoting a crypto asset on her official Instagram account.
The SEC said Kardashian failed to share that she was paid $250,000 to publish a post on her Instagram account about EMAX tokens, a crypto asset security being offered by EthereumMax. The reality star’s posts included a link to the EthereumMax website, which provided instructions for potential investors to purchase their tokens.
In her June 13, 2021 Instagram post Kardashian wrote, “This is not financial advice but sharing what my friends told me about the ethereum max token!” She added hashtags, like #ad, along with #emax and #disrupthistory, among others.
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Speaking to CNBC on Monday, SEC Chair Gary Gensler said putting #ad is just not sufficient to comply with SEC laws in regards to touting investments: “If you’re advertising perfuming, or you’re advertising vacation homes or anything else on the internet, there are various laws related to that. But these are the securities laws,” he said.
As of this Monday, the SEC said that Kardashian has agreed to cooperate with its ongoing investigation. Kardashian, 41, did not admit or deny the SEC’s findings in her settlement. Meanwhile, Gurbir Grewal, director of the SEC’s division of enforcement, said in a statement: “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.“
BREAKING: Kim Kardashian charged $1.26 million by SEC for pumping #crypto security.
She was paid $250k for this Instagram post
pic.twitter.com/UKLQ9Mfmd3
— Web3 Seems Legit (@web3seemslegit) October 3, 2022
Now, Kardashian is just one of several celebrities, along with boxer Floyd Mayweather and former NBA star Paul Pierce, who has promoted the crypto asset and who were the focus of a class-action lawsuit back in January over their endorsements.
Her settlement includes a $1 million penalty and $260,000 in disgorgement, prejudgment interest… whew!
So How Does Kim Kardashian Feel About This?
A lawyer for Kardashian said in a statement to USA Today, “Ms. Kardashian is pleased to have resolved this matter with the SEC. 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.”
As a result of this, Kardashian has also agreed to not promote any crypto asset securities for next three years.
Aside from the leaf drama, Kim has also been making headlines over her latest venture. The reality TV star launched a private equity fund, Skky Partners, which she co-founded with Jay Sammons, a former partner at the investment firm Carlyle Group. On top of investing in consumer and media companies, the firm will also target the hospitality, luxury and digital and e-commerce sectors, Skky Partners tweeted.
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The post Dang! Kim Kardashian To Pay $1.26 Million To Settle S.E.C. Charges Over Crypto Promotion appeared first on Hollywood Unlocked .