Kim Kardashian Agrees to Reimburse the Sec $1.3 Million for Unreported Payments for Instagram Cryptocurrency Posts
Kim Kardashian has settled a lawsuit for $1.26 million over claims that she broke the law by failing to disclose that she had been paid to promote a cryptocurrency startup on Instagram.
The SEC claimed in a statement released on Monday that Kardashian had omitted to disclose that she had been paid $250,000 to write a post promoting EMAX tokens, a crypto asset security sold by EthereumMax.
She shared a post that included a link to the business’s website for her readers to check out.
Kardashian did not acknowledge or reject the SEC’s claims, but she did agree to the settlement and to help with the ongoing inquiry, it was disclosed Monday.
According to SEC Chair Gary Gensler, “this case is a reminder that, just because a celebrity or influencer endorses an investment opportunity, including crypto-asset securities, does not guarantee that the investment product is appropriate for all investors.”