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Business News/ News / World/  'Reminder to celebrities': Kim Kardashian to pay huge fine for backing crypto
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'Reminder to celebrities': Kim Kardashian to pay huge fine for backing crypto

The SEC said today that the reality TV star and entrepreneur has agreed to cooperate with its ongoing investigation will pay $1.26 million in penalties, disgorgement and interest

Kim Kardashian. (AFP)Premium
Kim Kardashian. (AFP)

Kim Kardashian has agreed to settle charges brought by the US Securities and Exchange Commission (SEC) and pay $1.26 million in penalties for unlawfully touting a cryptocurrency on social media without disclosing the payment she received for the plug.

The SEC said in a statement on Monday that the reality TV star and entrepreneur has agreed to cooperate with its ongoing investigation will pay $1.26 million in penalties, disgorgement and interest.

It further said that Kardashian failed to disclose that she was paid $250,000 to publish the post about EMAX tokens, the crypto asset security being offered by EthereumMax on her Instagram account.

Her post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.

"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.

The US regulator also charged Boxer Floyd Mayweather Jr and a music producer known as "DJ Khaled" in November 2018 for allegedly not disclosing payments they received for promoting investments in initial coin offerings.

Neither Mayweather nor Khaled Mohamed Khaled admitted or denied the SEC's charges, but agreed to pay a combined $767,500 in fines and penalties.

Kardashian has agreed to not promote any crypto asset securities for three years.

While Kardashian is well known for reality tv, currently appearing on “The Kardashians" on hulu, she is also a successful businesswoman.

Her brands include SKIMS, which has shapewear, loungewear and other products, and a skincare line called SKKN.

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Published: 03 Oct 2022, 05:51 PM IST
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