Kim Kardashian has agreed to pay US$1.26 million to settle Securities and Exchange Commission charges that she promotes cryptocurrency on Instagram without disclosing that she was paid $250,000 to do so. so.
The SEC said Monday that the reality TV star and businessman has agreed to cooperate with the ongoing investigation.
The SEC said Kardashian did not disclose that she was paid to publish a post on her Instagram account about EMAX tokens, a crypto asset security powered by EthereumMax.
Kardashian’s post contains a link to the EthereumMax website, which provides instructions for potential investors to purchase EMAX tokens.
“Federal securities laws expressly state that any celebrity or other individual promoting the security of crypto assets must disclose the nature, origin, and amount of compensation they receive in exchange for advertising,” Gurbir Grewal, director of the SEC’s enforcement division, said in a prepared statement.
Kardashian has agreed not to advertise any crypto asset securities for three years.
“Ms. Kardashian is delighted to have resolved this matter with the SEC. Kardashian has fully cooperated with the SEC from the beginning and she remains willing to do whatever she can to assist the SEC in this matter. resolving this matter behind her back to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so she can continue with her various business goals.” a lawyer for Kardashian said in a statement.
While Kardashian is best known for her reality TV appearances, currently appearing on “The Kardashians” on hulu, she’s also a successful businesswoman. Her brands include SKIMS, which has shapewear, sunglasses and other products, and a skin care line called SKKN.
Cryptocurrencies are facing increasing congressional attention. The latest bipartisan proposal came in August from Sens. Debbie Stabenow, D-Mich., and John Boozman, R-Ark. It will hand over regulatory authority over Bitcoin and Ether to the Commodity Futures Trading Commission.
Bills proposed by other members of Congress and consumer advocates have suggested empowering the Securities and Exchange Commission.
This year, crypto investors have seen prices plummet and companies collapse with fortunes and jobs disappearing overnight, and a number of companies have been ousted by regulators. state charged with operating an illegal stock exchange.
