Kim Kardashian has been fined for “unlawfully touting” cryptocurrency.
‘The Kardashians’ star was slapped with a $250,000 fine by the SEC after she did not reveal she was being paid to post about Ethereum Max on her Instagram account last year.
Gurbir S Grewal, the director of the The Security and Exchange Commission’s Division of Enforcement said on Monday (03.10.2022): “The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion.
He ruled that potential buyers were “entitled” to know if she was “unbiased” and the 41-year-old influencer failed to point out that she might not be.
Gurbir added: "Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information
After she posted about it, the value of it fell and has agreed to settle, paying out a total of $1.26 million, without confessing guilt or innocence to the charges. The amount includes the quarter of a million fine, interest of $100,000, and a $1 million penalty for breaking anti touting laws. In addition, Kim has agreed not to promote any more crypto products for three years.
Along with this, the SKIMS founder also faces a legal battle after being accused of “pumping and dumping” her stock of Ethereum Max from investors.
The SEC have issued a warning about trusting celebs on their crypto advice.
Their chair, Gary Gensler said in a video posted on Monday: “This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors.”
