New York (CNN Business) – Kim Kardashian agreed to pay a $1.26 million fine to the Securities and Exchange Commission (SEC) to settle civil fees after the reality TV star promoted a crypto asset, EthereumMax, on Instagram.
The SEC has accused Kardashian of failing to disclose that she was paid $250,000 to post her message on Instagram. In addition to paying the fine, he agreed to cooperate with an ongoing investigation by the SEC.
“This case is a reminder that when celebrities or influencers support investment opportunities, including crypto-asset securities, this does not mean that these investment products are suitable for all investors,” said Gary Genisler, Chairman of the SEC Board of Directors.
“We encourage investors to consider the potential risks and opportunities of investing in light of their financial objectives,” he added.
Kardashian also agreed not to promote any cryptocurrency for three years.
“Ms. Kardashian is pleased to have resolved this matter with the Securities and Exchange Commission,” a statement from her attorney said. “Kardashian has cooperated fully with the SEC from the beginning and remains willing to do everything in his power to help the SEC with this matter. He wanted to put this matter behind him to avoid a long-running dispute. The agreement he reached with the SEC And the stock exchange allows him to do this so that you can follow your various trading activities.
The Securities and Exchange Commission found that Kardashian had violated the anti-advertising provision of the federal securities laws. Kardashian accepted the order without acknowledging or denying the Securities and Exchange Commission’s findings.
The settlement includes a $1 million fine and forfeiture of the $250,000 payment he received, plus interest.
Gensler chirp That “the incentives of any famous or influential person do not necessarily coincide with yours.” He said that the investing public should not confuse the skills Famous People “With the very different skills needed to provide appropriate investment advice.”
On June 13, 2021, Kardashian wrote in an Instagram post, “This is not financial advice, but sharing what my friends told me about the ethereum max token!” It has added various hashtags, including #ad, along with #emax and #disrupthistory, among others.
Gensler said in an interview on CNBC Monday that advertising is not enough to comply with SEC laws when it comes to encouraging investments.
“If you’re advertising for fragrances, or you’re advertising for vacation homes or anything else on the Internet, there are different laws about that. But these are securities laws,” he said.