Kim Kardashianwill pay a $1.26m (£1.12m) fine after advertising the cryptocurrency EthereumMax on Instagram.
Kim, 41, received $250,000 for advertising the cryptocurrency, but did not disclose that she had been paid to tout the crypto asset, it has been revealed.
She has now settled the charges with the US Securities and Exchange Commission (SEC), and has agreed not to advertise any cryptocurrencies within the next three years.
Gary Gensler, Chair of the SEC released a statement saying: “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.”
In a YouTube video he warns: “Celebrity endorsements… don't mean that an investment product is right for you or even, frankly, that it's legitimate.
“Even if a celebrity endorsement is genuine, each investment has its own risk and opportunities.”
In a statement issued to theBBC, Kim’s lawyer says: “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.
They continue: “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.”
Kim isn't the only star accused of failing to disclose that they had been paid to promote EthereumMax, with boxer Floyd Mayweather Jr, basketball player Paul Pierce, and the cryptocurrency’s founders all facing lawsuits too.
The lawsuits allege that they collaborated to “misleadingly promote and sell” the cryptocurrency in a “pump and dump” scheme designed to inflate the price before selling to investors.
The reality star had advertised the crypto currency on her Instagram in June 2021, when she asked followers: “ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.”
Kim is reported to be worth around $1.8 billion, so the $1.3 million fine is unlikely to make a dent in her savings, and certainly hasn’t stopped her from purchasinga new Malibu mansion for $70.4 million(£62 million).
The mum-of-four is also set to further expand her business acumen withthe launch of a new homeware rangelater this week.
READ NEXT:
Kim Kardashian swaps her trademark long hair for a mid-length ‘Marilyn Monroe’ cut
Kim Kardashian unaware Khloe and Tristan were having baby when she broke cheating news
Khloe Kardashian gives intimate look at arrival of her baby son with Tristan Thompson
Would you wear the new ‘looped bun’ trend loved by Kim Kardashian and Maura Higgins?
Keep up with the Kardashians and get all the gossip surrounding this family with OK!'s daily showbiz newsletter
Source: Read Full Article