Kim Kardashian to Pay $1.26 Million for SEC Settlement Over Crypto Post

Kim Kardashian singled out by the SEC for a Story on a cryptocurrency asset. She pledged to pay $1.26 million to avoid legal action.

Kim Kardashian will pay $1.26 million in a deal with the Securities and Exchange Commission (SEC) because of a post about a cryptocurrency published in an Instagram Story. The American star had received $250,000 to post content regarding EthereumMax’s EMAX token, but did not say she was paid to do so, according to the agency.

Kim Kardashian Pinned by SEC for Story About Cryptocurrency Asset

The SEC has determined that Kim Kardashian broke the law. She neither admitted nor denied the charge, mias agreed to pay a $1 million fine and approximately $260,000 in miscellaneous costs, which the SEC says covers what she received for publicity and prejudgment interest. Additionally, Kim Kardashian has pledged to stop promoting cryptocurrency for three years.

“This case is a reminder that when celebrities or influencers see investment opportunities, including crypto assets, it doesn’t mean those investment products are good for all investors,” the chairman of the company said. SEC Gary Gensler. “We encourage investors to consider the risks and opportunities of an investment in light of their own financial objectives.”

She pledged to pay $1.26 million to avoid legal action

Earlier this year, a class action lawsuit targeted Kim Kardashian and Floyd Mayweather for promoting EthereumMax tokens. The latter accused the two stars of participating in pump and dump actions, in which investors promote an asset and sell as soon as the value has increased. The stock claims the token’s value shot up 632% after Floyd Mayweather and former NBA player Paul Pierce promoted it.

According to a survey, 19% of respondents who heard of a Kim Kardashian Instagram Story mentioning cryptocurrency had invested in EthereumMax. The lawsuit claims the token’s value plunged 98% the day after the American star’s post.

This isn’t the first time Kim Kardashian has been accused of posting sponsored posts without mentioning it. The FTC explains that posts paid to support anything on social media must include the mention #Ad or the terms “Sponsored”, “Promotion” or “Paid ad”.

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