Kim Kardashian has agreed to pay $1.26 million (nearly Rs. 10 crore) to resolve Securities and Exchange Commission charges that she promoted a cryptocurrency on Instagram without disclosing that she had been paid $250,000 (nearly Rs. 2 crore) to do so.
The SEC said Monday that reality TV star and entrepreneur have agreed to cooperate with its ongoing investigation.
Kardashian did not disclose that she would publish an Instagram post on her Instagram account about EMAX tokens, a cryptocurrency asset security offered by EthereumMax.
Kardashian''s Instagram post included a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.
According to a prepared statement, 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.
Kardashian has agreed to stay silent on any crypto asset securities for three years.
Kim Kardashian is pleased to have resolved this issue with the SEC from the start. Kardashian fully cooperated with the SEC from the start and she remains willing to do everything she can to assist the SEC in this matter. She wanted to get this matter behind her in order to avoid a long-running dispute. According to a lawyer, Kardashian has stated in an email that she has agreed to resolve the issue with the SEC.
Kardashian is a well-known reality television star who is currently appearing on Hulu, but she has been a successful businesswoman. Her brands include SKIMS, which has shapewear, loungewear, and other services, as well as a skincare line called SKKN.
Following widespread crypto valuations, dozens of scams, and hundreds of billions of dollars, Congress has sought out a bipartisan proposal last month. The regulatory authority on Bitcoin and Ether, two popular cryptocurrencies, would be given to the Commodities Futures Trading Commission.
Kardashian is not the first celebrity to attract attention of regulators for their involvement in cryptocurrency. In 2018, the agency filed charges against professional boxer Floyd Mayweather Jr. and music producer DJ Khaled for failing to disclose payments they received for encouraging investments in digital currency.
Crypto investors have seen prices fall as businesses climb, with fortunes and jobs falling overnight, and some firms have been accused by federal authorities of operating an illegal securities exchange.