Kim Kardashian settles with SEC for "illegally promoting crypto"
04-10-2022
By Jawad Hussain
Kim Kardashian settled with the SEC for advertising a crypto asset security without reporting payment.
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Kim Kardashian's legal troubles cost her a lot.
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The SEC charged the SKIMS mogul on Oct. 3 for promoting a crypto asset security marketed by EthereumMax without disclosing payment.
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Kim agreed to settle the accusations and pay $1.26 million in fines, disgorgement, and interest, according to an SEC press statement.
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Kim's lawyer told E! News that she's happy to have settled with the SEC. "Kardashian has cooperated with the SEC from the start and continues willing to help.
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She hoped to end the dispute quickly. The SEC arrangement allows her to pursue her many business interests."
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Kim neglected to declare that she was paid $250,000 to promote EthereumMax's EMAX coins on Instagram.
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When celebrities or influencers advocate investment possibilities, including crypto asset securities, it doesn't mean they're suited for all investors, SEC Chair Gary Gensler said.
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"Investors should weigh an investment's risks and opportunities against their financial goals."
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Gensler: "Ms. Kardashian's case reminds celebrities and others that the law compels them to declare when and how much they are paid to encourage investment in securities."