The US Securities and Exchange Commission (SEC) has charged Kim Kardashian for promoting a cryptocurrency on her Instagram page without disclosing that it was a paid advertisement.
The SEC said the reality TV superstar was paid $250,000 to promote EMAX tokens on her Instagram account.
Kardashian did not admit or deny the regulator’s allegations, but has agreed to pay a fine of $1.26 million and not to tout any digital assets for three years.
“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,” SEC Chair Gary Gensler said in a statement on Monday.
The SEC has previously warned celebrities promoting cryptocurrencies without disclosing whether they were paid to do so. In 2018, it fined boxer Floyd Mayweather and music producer DJ Khaled for the same violation.
The post in question was made last year, where the Kardashian included “#AD” towards the bottom of the caption. The SEC said investors still weren’t made aware that the celebrity was paid of it.
(With Bloomberg)
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