Kim Kardashian to pay over $1M to settle with SEC over crypto charges
Kardashian was paid $250K to post on her Instagram account about EMAX tokens
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Kim Kardashian will pay $1.26 million to settle charges that she unlawfully touted a crypto asset security on social media without disclosing the payment she received for the promotion, the U.S. Securities and Exchange Commission said on Monday.
The SEC said that Kardashian failed to disclose that she was paid $250,000 to post on her Instagram account about EMAX tokens, a crypto asset offered by EtherumMax.
"Are you guys into crypto????" the post on her Instagram story from June 2021 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."
A screengrab of Kim Kardashian's June 13, 2021, Instagram Story. (Instagram/Kim Kardashian)
KIM KARDASHIAN LAUNCHING PRIVATE EQUITY FIRM TO HELP YOUNG ENTREPRENEURS
Kardashian's post also contained #AD at the bottom and a link to the EthereumMax website, "which provided instructions for potential investors to purchase EMAX tokens," the SEC said in a press release.
Kardashian neither admitted nor denied the agency's findings.
According to Forbes, Kim Kardashian is reported to be worth nearly $2 billion. (MEGA/GC Images / Getty Images)
"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."
Kim Kardashian continues to expand her empire. After announcing her SKKY Partners venture, she also disclosed she is expanding her SKKN by Kim business with home accessories. (Gotham/GC Images / Getty Images)
Kardashian, who recently launched her own private equity firm, is not the first celebrity to be disciplined by the SEC. In 2018, both boxer Floyd Mayweather Jr. and music producer DJ Khaled were charged after allegedly failing to disclose how much they were each paid to promote investments in initial coin offerings.
Neither Mayweather nor Khaled confirmed nor refuted the charges, but agreed to pay fines that totaled $767,500.
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Both Floyd Mayweather Jr. and DJ Khaled were charged by the SEC in 2018 for reportedly not disclosing how much they were paid for promoting investments in initial coin offerings. (Andrew D. Bernstein/NBAE via Getty Images / Getty Images)
"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," Gensler added.
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A representative for Kardashian did not return FOX Business' request for comment.