Kim Kardashian has agreed to pay $1.26 million to settle allegations that she promoted a cryptocurrency on Instagram without disclosing that she was compensated $250,000 for doing so.
According to a statement issued by the SEC on Monday, the business mogul and reality television star agreed to assist the SEC with its ongoing investigation.
According to the SEC, Kardashian did not disclose on her Instagram account that she was paid to promote EMAX tokens, a digital asset security offered by EthereumMax.
Kardashian’s post included a link to the EthereumMax website, where prospective investors could find instructions on how to buy EMAX tokens.
Gurbir Grewal, director of the SEC’s division of enforcement, said in a prepared statement that “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.”
Kardashian has consented to refrain from endorsing any cryptocurrency-related securities for the next three years.
According to a statement from Kardashian’s attorney, “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. ”
While Kardashian is best known for her reality TV show, she is also a successful businesswoman. Her companies include SKIMS, which sells loungewear, shapewear, and other goods, and SKKN, a skincare line. She can currently be seen on the Hulu streaming service in the show The Kardashians.
The US Congress is paying more and more attention to cryptocurrency. Senators John Boozman (R-AR), and Debbie Stabenow (D-MI), introduced the most recent bipartisan crypto legislation in August. It would delegate authority over Bitcoin and Ether regulation to the Commodities Futures Trading Commission.
Consumer advocates and lawmakers have put forward bills that would give the Securities and Exchange Commission more power.
This year, cryptocurrency investors have seen prices collapse; businesses collapse, and fortunes and employment vanish overnight. Federal officials have even accused some groups of running an illegal securities exchange.
If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
