Kim Kardashian agrees to pay SEC $1.3 million over undisclosed Instagram crypto post payments
Kim Kardashian has agreed to pay $1.26 million to settle charges relating to a post about a cryptocurrency company she shared on Instagram without disclosing how much she'd been paid to do so.
The reality TV star had failed to disclose that she was paid $250,000 to publish a post about EMAX tokens, a crypto asset security sold by EthereumMax,
The post on her Instagram Story, from June 2021, contained a link directing her followers to the company's website. She was among many celebrities touting the token.
"Are you guys into crypto????" the post read. "This is not financial advice but sharing what my friends just told me about the Ethereum Max token!"
"A few minutes ago Ethereum Max burned 400 trillion tokens- literally 50% of their admin wallet giving back to the entire E-Max community."
The SEC announced Monday that Kardashian had agreed to the settlement and to cooperate with the ongoing investigation, without admitting or denying the agency's findings.
The SEC said that Kardashian had violated the anti-touting provision of the federal securities laws. Her settlement included $250,000 in disgorgement for the original payment she was given, plus $10,000 in interest, and a $1 million penalty.
Kardashian also agreed to not promote any crypto asset securities for three years, the SEC said.
"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," SEC Chair Gary Gensler said in a statement.
"Ms. Kardashian's case also 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 investing in securities."
Kardashian is "pleased" to have resolved the matter, her lawyer said in a statement provided to Insider.
"Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter," her lawyer said. "She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits."