One of the world's most successful Instagram influencers gets lumped with a hefty penalty by the US regulator.
The Securities and Exchange Commission (SEC) has ordered Kim Kim Kardashian to pay $1.26 million for failing to declare that she was paid to promote crypto token EthereumMax on her social media channels.
Kardashian did not contest the SEC’s accusation that she was paid $250,000 for unlawfully making a post about the product on her Instagram account. The post in question held a link to the token's website that provided purchase instructions for potential investors.
Not For All
In addition to the fine, Kardashian was ordered to refrain from advertising crypto asset securities for the next three years.
«This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,» SEC chair Gary Gensler said.
Not Alone
Kardashian is not the only celebrity to receive a fine by the SEC relating to crypto endorsements. In the past, ex-boxer Floyd Mayweather Jr. and DJ Khaled have been charged for promoting Initial Coin Offerings without telling their followers that they had been paid to do so.
