Kim Kardashian has agreed to settle charges of unlawfully touting a crypto security and to pay $1.26 million in penalties, disgorgement and interest, the U.S. Securities and Exchange Commission said on Monday.
The SEC said in a statement that reality television star and influencer Kardashian failed to disclose that she was paid $250,000 to publish the post about EMAX tokens, the crypto asset security being offered by EthereumMax on her Instagram account.
“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.
The U.S. regulator also charged Boxer Floyd Mayweather Jr. and a music producer known as “DJ Khaled” in November 2018 for allegedly not disclosing payments they received for promoting investments in initial coin offerings.
Neither Mayweather nor Khaled Mohamed Khaled admitted or denied the SEC’s charges, but agreed to pay a combined $767,500 in fines and penalties.