Celebrity reality TV star Kim Kardashian was charged by Securities and Exchange Commission (SEC) for failing to disclose that she had been paid when she promoted a crypto asset on social media. The SKIMS founder who is reportedly worth $1.8 billion agreed to pay a fine of $1.26 million to the SEC to settle the charge.
According to a report in The Guardian, the SEC said that the celebrity had failed to disclose that she had been paid for the crypto ad and this was a violation of federal security laws. In June 2021, Kim Kardashian had asked her millions of followers: “Are you guys into crypto????” and more. The post also featured a hashtag ad and included a link to a crypto website called EthereumMax. It gave users instructions on how to buy tokens.
Kim Kardashian was paid $250,000 for the post. She didn’t mention this. It violated the anti touting provision of federal security law. So, it became a federal violation.
She has agreed to pay a $1.26 million fine and will not promote crypto assets for the next three years. She will cooperate with the SEC’s ongoing investigation. According to The Guardian, the reality star has not admitted or denied the regulator’s findings.
The outlet reported that Gary Gensler, the SEC chair said that the case was a reminder to celebrities and influencers that when they endorsed investment opportunities, including crypto asset securities, it didn’t mean that “those investment products are right for all investors.”
The outlet also said that a lawyer for Kim Kardashian said that she had “fully cooperated with the SEC during the investigations and would continue to assist in the matter.
The legal representative of the SKIMS founder said that she wanted to get the “matter behind her” and “to avoid a protected dispute” as she wished to move forward with her other “business pursuits.”