Kim Kardashian (Kim Kardashian)

Kim Kardashian (Kim Kardashian)

Biography

2022: Payment of $1.3 million fine for cryptocurrency advertising

On October 3, 2022, Kim Kardashian decided to pay a fine of $1.26 million to the Securities and Exchange Commission (SEC) in order to settle civil charges after the reality star published information about the crypto asset EthereumMax on Instagram (owned by Meta, which in Russia is recognized as an extremist organization and banned).

The SEC accused Kardashian of not disclosing information about receiving $250,000 for a post published on Instagram. In addition to paying the fine, she also pledged to facilitate the investigation conducted by the SEC.

The case serves as a warning that when celebrities or powerful figures promote information about investment opportunities, including securities and crypto assets, it doesn't mean that such investments will work for all investors, SEC Chairman Gary Gensler said. We strongly encourage investors to review potential risks and investment opportunities in line with their own financial objectives.

Kardashian also pledged to stop advertising any securities or crypto assets within three years.

Kardashian is satisfied with the settlement with the SEC, her lawyers said in a statement. Kardashian has fully facilitated the SEC from the start, and remains committed to providing any assistance to the SEC in the process. To avoid a protracted dispute, she sought to complete the process. The agreement she reached with the SEC allows her to move on in her own business.

The SEC concluded that Kardashian violated the anti-advertising provision of federal securities laws with her publication. Kardashian agreed with the decision without acknowledging or denying the SEC's findings.

The settlement includes a fine of $1 million and the deprivation of the payment she received in the amount of $250 thousand, including interest.^[1]

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