Kim Kardashian fined $1.26 million over cryptocurrency AD
American media personality, Kim Kardashian, has been fined $1.26 million for sharing a cryptocurrency advert on her Instagram page, without revealing the amount she was paid for the promotion..
The United States Security and Exchange Commission charged her to court after she promoted EthereumMax, on her social media platform.
Kardashian is only one of many celebrities named in a class-action lawsuit filed last January in a California U.S. District Court on behalf of investors who claim they lost money after the celebrities promoted the cryptocurrency.
In the lawsuit, the plaintiffs claimed they had invested money in the cryptocurrency after “viewing numerous celebrity endorsements of EMAX.”
According to the SEC, Kardashian did not reveal that she was paid $250,000 to publish a post about EMAX tokens, a crypto asset security offered by EthereumMax.
Although the case is still ongoing, the SKIMS founder has agreed to settle to the tune of $1.26 million.
The commission shared that Kardashian’s settlement includes the payment she received for promoting the cryptocurrency as well as a $1 million fine.
In addition, the reality tv star agreed to refrain from promoting any crypto asset securities for the next three years.
A statement shared by Kardashian’s lawyer read in part, “Ms. Kardashian is 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.
