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.
“Kardashian’s post contained 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.
“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.”
“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.
A representative for Kardashian did not immediately return FOX Business’ request for comment.