Kim Kardashian was fined $1.26M for advertising a crypto currency without disclosing she was paid.
Kardashian settled SEC charges for promoting EthereumMax's crypto asset security online. She never said she was paid to advertise the cryptocurrency to her fans.
In a statement, the SEC said Kardashian "violated anti-touting laws"
Kardashian consented to a $1.26M settlement, including $260K in disgorgement and a $1M penalty, without admitting or rejecting the SEC's allegations.
She is also committed not to promote crypto for three years.
The SEC said Kardashian "failed to disclose" she was paid $250K to promote about EthereumMax's EMAX coins on Instagram.
The lawsuit states the defendant pushed the tokens to boost her price and profit "at the expense of their followers and investors," before selling them at an inflated price.
Gary Gensler, SEC chair, said "Ms. Kardashian’s case also serves as a reminder to celebrities and others the law requires them to disclose to the public when and how much they are paid to promote investing in securities."
Gurbir S Grewal, director of the SEC's Division of Enforcement, said "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 if a security's publicity is unbiased, and "Ms Kardashian failed to disclose this information," he said.
By fLEXI tEAM