Reality TV star Kim Kardashian has agreed to settle charges for promoting cryptocurrency on social media to the tune of $1.26million. The US Securities and Exchange Commission (SEC) brought charges against her for failing to disclose that she was paid for this promotion.
The star was accused of being paid $250,000 that she did not disclose to publish a post on her Instagram account. The post included a link to EthereumMax’s website which gave instructions on how to purchase Emax tokens.
Emax tokens are a crypto asset security and are advertised as bridging the gap between cultural tokens and known crypto currency foundations. A number of celebrities endorsed the currency and became the focus of a class action lawsuit back in January.
The SEC has said that Kardashian has agreed to cooperate with the ongoing investigation as well as paying $1.26million to settle the charges. She has also agreed not to promote any crypto asset securities for three years.
Gurbir Grewal, director of the SEC’s division of enforcement, said in a prepared statement: “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 often promotes brands on social media, especially her own launches for loungewear brand Skims and skin care line Skkn. It’s thought the Kardashians star charges on average $900k per sponsored Instagram post.
