Kim Kardashian slammed with $1 million fine by SEC over unlawful crypto promotion
Beauty mogul Kim Kardashian recently faced the heat as she was fined to pay $1.26 million after federal regulators said she unlawfully promoted a cryptocurrency
Beauty mogul Kim Kardashian recently faced the heat as she was fined to pay $1.26 million after federal regulators said she unlawfully promoted a cryptocurrency on Instagram. The star disclosed how much she was paid for the promotion, Securities and Exchange Commission officials announced Monday morning.
As per AP, apart from the fine that she was levied, the star is also barred from promoting cryptocurrencies for three years. The reality TV star also must give up the $250,000 she was paid for the Instagram post about Ethereum Max tokens, plus interest, according to a Securities and Exchange Commission settlement announced Monday.
Kim Kardashian fined $1 million by SEC
For those unaware, the 41-year-old celebrity is the latest one to get ensnared in regulations that require full disclosure by people getting paid to promote financial products. Other than Kardashian, in 2020, actor Steven Segal also agreed to pay more than $300,000 as part of a similar settlement with the SEC, which also banned him from promoting investments for three years.
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Apart from the two names mentioned above, professional boxer Floyd Mayweather Jr. and music producer DJ Khaled also had to face similar fines and were barred from promoting the same on social media. The incident by Kim took place last year in June when she shared a post, asking her millions of followers: “ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.” In doing so, she violated the anti-touting provision of federal securities law, it said.
As per the statement by the Exchange Commission, Kardashian agreed to pay $1.26 million in penalties, which includes her promotional payment and had even noded to cooperate with the commission’s investigation.
