Kim Kardashian has reached a settlement to resolve charges of illegal cryptocurrency promotion and will pay $1.26 million in penalties, restitution and interest, the Securities and Exchange Commission (SEC) said on Monday.
Kardashian, a reality star and influencer, did not disclose that she was paid $250,000 for making a post on her Instagram account about EMAX tokens, the crypto asset offered by EthereumMax, the SEC said in a statement.
Under US law, people promoting a certain security or crypto asset have to disclose not only that they are receiving a payment, but also the amount, source and nature of those payments, SEC Chairman Gary Gensler said.
“This is about protecting the investing public when someone is promoting a stock, whether it’s a celebrity or an influential person, and that’s the most important thing,” Gensler said in an interview with CNBC.
Kardashian, whose post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens, has agreed to pay the imposed fee without admitting or denying the SEC’s findings.
“I want to acknowledge Ms. Kardashian’s cooperation and her continued cooperation. We greatly appreciate it,” Gensler added.
Kardashian is pleased to have resolved the case and fully cooperated with the SEC, her attorney Michael Rhodes said.
“She wanted to put this matter behind her to avoid a protracted dispute. The settlement she has reached with the SEC allows her to do so so she can get on with her various business activities,” Rhodes said in a statement.
Last month, Kardashian, who has expanded her presence in the world of finance, launched a new private equity firm focused on investing in media and consumer businesses.
Regulating cryptocurrency markets has been high on the SEC agenda this year as digital asset prices have swung wildly due to growing recession fears, rising interest rates, and rising interest rates. geopolitical turmoil.
The US regulator also charged boxer Floyd Mayweather Jr. and a music producer known as “DJ Khaled” in November 2018 for allegedly failing to disclose payments they received for promoting investments in initial coin offerings.
Neither Mayweather nor Khaled Mohamed Khaled admitted or denied the SEC charges, however they agreed to pay a total of $767,500 in fines and penalties.