Kim Kardashian Charged For Promoting Crypto Asset, Agrees To Pay $1.3 Million Fine

Kim Kardashian agreed to pay a $1.26 million fine to the Securities and Exchange Commission to settle civil charges after the reality TV star touted a crypto asset, EthereumMax, on Instagram.

The SEC charged Kardashian with failure to disclose that she was paid $250,000 to publish her Instagram post. In addition to paying the fine, she agreed to cooperate with the SEC’s ongoing investigation.

“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,” said SEC Chair Gary Gensler. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”

Kardashian also agreed to not promote any crypto securities for three years.

“Ms. Kardashian is pleased to have resolved this matter with the SEC,” said a statement from her attorneys. “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. 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.”

The SEC found that Kardashian violated the anti-touting provision of federal securities laws. Kardashian agreed to the order without admitting or denying the SEC’s findings.

The settlement includes a $1 million fine and forfeiting the $250,000 payment she received, plus interest.