Kim Kardashian Hit With $1.3m Fine Over Crypto Promo On Instagram
Kim Kardashian has agreed to pay a fine of more than one million dollars after failing to disclose that she had been paid for a post promoting a crypto-currency.
The Securities and Exchange Commission (SEC) published a statement announcing the charges against Kardashian stating she had “tout[ed] on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.” The release also reveals that she was paid $250,000 for the promotion.
In June 2021, Kardashian published a post asking followers: “Are you into crypto??? This is not financial advice but sharing what my friends just told me about the Ethereum Max token.” The post, reports NBC News, included a link to the Ethereum website.
Kardashian has 330 million followers on Instagram and 73.7 million followers on Twitter. Other celebrities have also been pulled up by the SEC in the past but she is the highest profile to date.
SEC Chair Gary Gensler highlighted the power that celebrities wield and why, therefore, they need to be transparent. He said: "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. We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals." He added: "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."
