Kim Kardashian is as famous for her business savvy as for her celebrity, but she's just settled with the Securities and Exchange Commission (SEC) for her part in improperly promoting a cryptocurrency asset.
The Kardashians star has settled with the government watchdog for "$1.26 million in penalties, disgorgement, and interest," according to an SEC statement, and also has agreed to "cooperate with the Commission's ongoing investigation" into her promotion of EthereumMax.
The SEC charged that Kim promoted the cryptocurrency to her 278 million social media followers without disclosing that she was paid $250,000 to do so, which is a violation of the "anti-touting" provision of federal securities laws.
"This case is a reminder that, when celebrities or influencers endorse investment opportunities…it doesn't mean that those investment products are right for all investors," said SEC Chair Gary Gensler in the SEC statement. "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."
Also as part of the settlement, Kardashian agreed to not promote any crypto securities for three years.
For her part, Kim's lawyer noted in a statement that she "was pleased to have resolved this matter with the SEC."
"Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter," the statement continued. "She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits."
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