Kim Kardashian may be a billionaire, but she’ll be out over a million dollars due to a fine she has agreed to pay the Securities and Exchange Commission.
According to CNN, the SEC has charged Kardashian with failure to disclose that she was paid $250,000 to publish a June 2021 Instagram post about using the crypto asset EthereumMax.
While Kardashian’s post included a “#ad,” it seems that hashtag is not enough to comply with SEC laws in regards to touting investments, SEC Chair Gary Gensler said in an CNBC interview, as reported by CNN.
According to a statement from the reality star’s attorneys, Kardashian fully cooperated with the SEC. “Ms. Kardashian is pleased to have resolved this matter with the SEC,” said the statement. “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.”
Related: Kim Kardashian’s harsh advice to women incites a firestorm of criticism.
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” Gensler said, according to CNN. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”
Kardashian will forfeit the $250,000 payment she received for the post, plus interest, and will not promote any crypto securities for three years.
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