Kim Kardashian settles SEC charges over disclosure of Instagram-promoted crypto posts for $1.26 million
Cryptocurrency is once again proving expensive for celebrities involved in its marketing, this time with Kardashian paying fines over a salary disclosure issue.
Kim Kardashian has found herself in the hot seat with the United States Securities and Exchange Commission and forced to pay for trades she made with a cryptocurrency security in 2021. The celebrity had already found herself under scrutiny for using her Instagram to promote cryptocurrency , but the discovery of a payment from said cryptocurrency drew action from the SEC. Kardashian was forced to pay about $1.26 million to settle the charges along with additional restrictive covenants as a result.
Kim Kardashian’s settlement with the SEC was reported by CNBC, following the official announcement of the charges by SEC Chairman Gary Gensler. According to Gensler and the SEC, Kardashian was accused of “unlawfully promulgating a crypto security” via Instagram. In June 2021, Kardashian shared a post promoting EthereumMax’s crypto asset. The post itself raised the eyebrows of authorities and regulators. However, it was then further discovered that she failed to disclose a payment she received for the campaign. In the end, Kardashian agreed to pay about $1.26 million to settle the charges.
Source: Twitter
Kim Kardashian’s net worth is reportedly around $1.8 billion, so $1.26 million might not seem like a lot for the reality TV star and ex-wife of Kanye West. However, there are further provisions on the settlement. Not only is Kardashian banned from marketing any further crypto assets for at least 3 years, but she will reportedly cooperate in a further ongoing investigation. Kardashian isn’t the first to take issue with a cryptocurrency campaign. Matt Damon and Tom Brady, who famously promoted Crypto.com, were defrauded along with many other users when hackers cracked the platform’s security and emptied a large number of crypto wallets, costing users a fortune in cryptocurrency theft before Crypto.com owners stopped transactions.
Nevertheless, while the fine may be a pittance for Kardashian, the restrictive provisions and cooperation in investigations may cause the celebrity to think twice about engaging in cryptocurrency partnerships.
