Kim Kardashian will be fined $1.26 million for promoting the use of a cryptocurrency through her Instagram account without disclosing that she had been paid to do so.
The US Securities and Exchange Commission (SEC, stock market authority) announced on Monday a millionaire fine against Kim Kardashian for having illegally advertised cryptocurrencies through her social networks, without declaring that she was benefiting financially.
“Ms. Kardashian’s case serves as a reminder to celebrities and others that they are required by law to disclose to the public when and how much they are paid to promote securities investing,” said SEC Chairman Gary Gensler, in a statement.
Kim has promoted everything, however, it was her foray into the shady world of cryptocurrencies that got her into trouble and she will have to shell out over $1 million as a result.
Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens, and the SEC investigation found that the post violated the anti-advertising provision of federal securities laws.
Kim Kardashian has therefore voluntarily agreed to pay the $1.26 million fine, which covers the money she was paid for the promotion, which was $250,000, as well as pre-trial interest.
“We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial goals,” Gensler said.
The socialite, founder of SKIMS, also agreed not to promote any kind of crypto assets for three years.
But Kim Kardashian has not been the only one to be sanctioned. In the past, other celebrities have been penalized by US authorities for illegally promoting the use of cryptocurrencies, including boxer Floyd Mayweather, rap star DJ Khaled, actor Steven Seagal, and rapper T.I.
Matt Damon, Gwyneth Paltrow and Elon Musk have also bet on this adventure, and although they did not lose money, they did lose credibility and received strong criticism.