Kim Kardashian has agreed to settle charges brought by the US Securities and Exchange Commission (SEC).
The reality star will pay $1.26 million (€1.29 million) in penalties for promoting a cryptocurrency on social media without disclosing the payment she received for it.
The SEC said that the SKIMS founder, 41, has agreed to cooperate with its ongoing investigation and also agreed to not promote any crypto asset securities for three years.
The agency announced charges against Kim for “touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion”.
They said that the mother-of-four failed to disclose that she was paid $250,000 (€256,000) to publish a post on her Instagram account about EMAX tokens.
According to a press release for the SEC, Kim agreed to settle the charges, as well as pay $1.26 million in penalties, disgorgement and interest.
They added that she agreed to do this “without admitting or denying the SEC’s findings”.
Kim’s lawyer told E! News in a statement: “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. 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.”
SEC Chair Gary Gensler said in the press release: “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.”
“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.”
