By Senad Karaahmetovic
The Securities and Exchange Commission (SEC) announced today it has charged celebrity star Kim Kardashian for unlawfully promoting crypto asset security.
Kardashian is charged for not disclosing she received a $250,000 payment for the promotion of a crypto asset security offered by EthereumMax. She received the payment for a post on her Instagram account about crypto tokens.
The SEC said that Kim Kardashian agreed to settle the charges and pay $1.26 million in penalties. SEC's press release notes Kardashian violated the anti-touting provision of the federal securities laws.
"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," said SEC Chair Gary Gensler. "We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals."
Gensler added that he hopes Kardashian's case will serve as an example to other celebrities about not disclosing to the public "when and how much they are paid to promote investing in securities."