American star Kim Kardashian agreed to pay $1.26 million to tout a cryptocurrency on her Instagram account without mentioning that she was paid for it, Wall Street cop revealed Monday to DRY.
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The agency specifically accuses the reality TV star, influencer and businesswoman of promoting a cryptocurrency asset, EMAX token, sold on EthereumMax, without stating that she was paid $250,000 by the platform for this operation.
The fine includes a $1 million penalty and an adjustment of $260,000 equal to the money received from Ms. Kardashian plus interest.
Rapper Kanye West’s ex-wife, who agreed to cooperate with the SEC, also pledged not to promote cryptocurrency investments for three years.
“This case is a reminder that when a celebrity or influencer promotes investment opportunities, including cryptocurrency investments, it doesn’t mean those investment products are good for all investors,” said Gary Gensler, the SEC’s chief executive officer.
“We encourage investors to consider the potential risks and rewards of an investment in light of their financial goals,” Gensler added.
According to Forbes, Ms. Kardashian’s net worth is $1.8 billion. She has 331 million followers on Instagram.
Already present in the world of makeup and lingerie sculpting, she founded private equity firm SKKY Partners with Jay Simmons in early September.
Other celebrities have been caught by US authorities in the past for illegally promoting cryptocurrencies, including boxer Floyd Mayweather, rap star DJ Khaled, actor Steven Seagal and rapper TI