Kim Kardashian is hit with $1.26m SEC charge for unlawfully touting crypto currency on Instagram-Zamkuwire - Zamkuwire.com

Kim Kardashian is hit with $1.26m SEC charge for unlawfully touting crypto currency on Instagram-Zamkuwire

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Kim Kardashian (pictured last week) has been fined $1.26million for promoting cryptocurrency on Instagram without telling her followers how much she was paid for it last June

  • Kim Kardashian was fined by the SEC for failing to disclose to the public that she was paid $250,000 to promote Ethereum Max in June 2021 
  • She posted on her Instagram story promoting the crypto tokens and adding the hashtag ‘AD’ 
  • ‘This isn’t financial advice, but sharing what my friends just told me about the Ethereum Max,’ she said
  • SEC securities laws state that celebrities must declare when and how much they are paid to promote crypto 
  • Kardashian has agreed to pay a $1.26million fine and to refuse crypto-promoting jobs for three years 
  • An attorney for Kardashian told DailyMail.com she is ‘pleased to have resolved the matter’ 

Kim Kardashian has been fined $1.26million by the SEC for failing to disclose that she was paid $250,000 to promote a cryptocurrency on Instagram.

In June 2021, Kardashian promoted the cryptocurrency Ethereum Max on her Instagram story.

‘Are you guys into crypto? 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.

‘Kardashian added the hashtag #AD, which signaled the post was paid for.

She however did not share that she’d been paid $250,000 for the post – which the SEC says was a violation of securities laws.

Now, Kardashian – who is worth over $1billion – must refuse crypto-promoting jobs for three years.

Kim Kardashian (pictured last week) has been fined $1.26million for promoting cryptocurrency on Instagram without telling her followers how much she was paid for it last June

In June 2021, Kardashian promoted the cryptocurrency Ethereum Max on her Instagram story. ‘Are you guys into crypto? 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. ‘Kardashian added the hashtag #AD, which signaled the post was paid for it

The SEC released this order against Kardashian on Monday morning

In June 2021, Kardashian promoted the cryptocurrency Ethereum Max on her Instagram story. 'Are you guys into crypto? 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. 'Kardashian added the hashtag #AD, which signaled the post was paid for it

SEC cautions buying crypto promoted by celebs as Kim K is fined

In a statement announcing Kardashian’s fine on Monday, SEC Chair Gary Gensler said: ‘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.

 Ms. Kardashian is pleased to have resolved this matter with the SEC.

‘The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion.

‘Investors are entitled to know whether the publicity of a security is unbiased, and  Kardashian failed to disclose this information,’ said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.

The SEC has also released a video warning members of the public not to invest in something purely because a celebrity has endorsed it.

Michael Rhodes, a lawyer for Kardashian told DailyMail.com in a statement: ‘Ms. Kardashian is pleased to have resolved this matter with the SEC.

‘Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter.

‘She wanted to get this matter behind her to avoid a protracted dispute.

‘The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits.’

The SEC released this order against Kardashian on Monday morning

 

Kardashian, 41, is the latest celebrity to be fined for their promoting of cryptocurrency.

Floyd Mayweather Jr., DJ Khaled, and Steven Segal have all been fined in the past.

No other Kardashians were named in the SEC complaint. The famous family is known to promote an array of products on social media for handsome payouts.

Flat tummy tea, vitamins and designer handbag giveaways pepper the family’s Instagram feeds.

In recent years, Kim – who is estimated to be worth $1.8billion – has focused more on promoting her own brands and collaborating with others.

The reality TV star makes most of her income through her brands KKW Beauty and Skims, her underwear and loungewear label.

She recently partnered with Dolce and Gabbana to produce a collection and fashion show at Milan Fashion Week, and co-founded the private equity firm Skky Partners.

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