Leer en Español
Model Kim Kardashian will have to pay $1.26 million following a fine from the Securities and Exchange Commission for “illegally” advertising cryptocurrencies through her social networks.
The government body said in a statement Monday that the celebrity agreed to settle —not to acknowledge— the charges and cooperate with the ongoing investigation.
The SEC order finds that Kardashian failed to disclose that she was paid $250,000 for a post on her Instagram account about EMAX tokens, a crypto asset security product offered by the company EthereumMax.
Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.
SEC Chairman Gary Gensler said the Kardashian case 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 securities investing.
Under federal securities laws, any celebrity or other person promoting a cryptocurrency must disclose the nature, source, and amount of compensation they received in exchange for the promotion.
The SEC’s order finds that Kardashian violated the anti-publicity provision of the federal securities laws.
The model, without admitting or denying the SEC’s findings, agreed to pay the aforementioned $1.26 million, which corresponds to the return of the proceeds plus interest and a fine of $1 million.
Kardashian also agreed not to promote any crypto assets securities for three years.