Reality TV star and businesswoman Kim Kardashian has settled the SEC charges that she failed to relieve a payment she received for promoting a crypto asset on her Instagram feed, the agency announced the news.
Related: UK authorities stepped up the fight against the promotion of crypto
KK's post also included a link to the EthereumMax website, where visitors could see instructions on how to purchase EMAX crypto assets.The SEC chair Gary Gensler said the case is a reminder that endorsements by celebrities or influencers doesn't mean that those investment products are right for all investors. Gensler said the agency encourages investors to consider potential risks and opportunities taking into account their own financial goals.
The publication by the SEC says Kardashian agreed to pay $1.26 M in penalties and cooperate with the ongoing investigation related to the project Ethereum Max.
The Director of the SEC's Division of Enforcement, Gurbir Grewal said any celebrity or individual who promotes a crypto asset security should disclose the nature, source, and amount of compensation they received in exchange. He added that investors are entitled to know whether the publicity of a security is unbiased.