The Securities and Exchange Commission has fined Kim Kardashian $1.26 million for failing to disclose to her fans that she was being paid to promote a cryptocurrency.
The announcement was made by the SEC on Monday. According to reports, Kardashian received $250,000 in exchange for her Instagram posts for EthereumMax’s EMAX cryptocurrencies.
A link to the EthereumMax website, where her followers could purchase the tokens, was also included in Kim’s posting.
Kim has already given the SEC $1.26 million in fines, disgorgement, and interest. and has assisted with the continuing SEC inquiry.
SEC Chair Gary Gensler says, “Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.”
In addition to the $1 million fine, the remaining $260,000 includes the equivalent of what she earned for posting the promotion.