Kim Kardashian pays USD 1.26 million fine for paid crypto ad, SEC says
Kim Kardashian has promoted everything from appetite-suppressing lollipops to melon-flavored liqueur to toilet paper, but it was her foray into the murky world of cryptocurrencies that got her into hot water.
The reality television star and influencer has agreed to settle charges of unlawfully touting a crypto security and to pay $1.26 million in penalties and fees, the U.S. Securities and Exchange Commission said on Monday.
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Kardashian, who has 330 million followers on Instagram and 73.7 million followers on Twitter, failed to disclose that she was paid $250,000 by crypto company EthereumMax to publish an Instagram post about its EMAX tokens, the SEC said.
The SEC in November 2017 warned celebrities looking to cash in on the emerging digital asset space that U.S. rules require they disclose when they are being paid to endorse crypto tokens.
Since then it has pursued a handful of other celebrities, including action film star Steven Seagal, music producer "DJ Khaled" and boxer Floyd Mayweather Jr. for breaking that rule, but Kardashian is arguably the most high profile.
Kardashian has agreed to pay the charge without admitting or denying the SEC's findings. Her lawyer Michael Rhodes said Kardashian was pleased to have resolved the case.
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