Source: Raymond Hall / Getty
Kim Kardashian was a trending topic on Twitter Monday morning (Oct. 3) after a report went wide that she entered into a settlement with the Securities and Exchange Commission over a cryptocurrency promotion. The social media influencer will pay $1.26 million to the SEC after failing to disclose that the cryptocurrency company she promoted paid her $250,000 in exchange.
According to a press release issued by the SEC on Monday, Kim Kardashian, 41, will pay $1.26 after promoting EMAX tokens from crypto firm EthereumMax. The company paid Kardashian to promote the token on her popular Instagram page and urged her followers to purchase the currency complete with instructions.
From the SEC:
“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,” said SEC Chair Gary Gensler. “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,” Chair Gensler added.
“The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”
In addition to the settlement, Kardashian is not allowed to promote cryptocurrency for the next three years. The SEC’s ruling falls under its anti-touting provision of the federal securities laws and is still under an open investigation.
On Twitter, folks are reacting to Kim Kardashian and the SEC ruling. Those replies can be found below.
Today we announced charges against Kim Kardashian for promoting a crypto security offered by EthereumMax without disclosing the payment she received for the promotion.
Kardashian agreed to settle the charges, pay $1.26 million, and cooperate with the investigation.
— U.S. Securities and Exchange Commission (@SECGov) October 3, 2022
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Photo: Getty
1.
Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.
This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.
— Gary Gensler (@GaryGensler) October 3, 2022
2.
Kim Kardashian got paid $250k to promote Ethereum Max then lost $1.3m of that to an SEC fine. Would have gotten better returns just investing in Ethereum MAX, which is down 97% since her post.
— Marcus Hutchins (@MalwareTechBlog) October 3, 2022
3.
Kim Kardashian was just charged by the SEC for unlawfully touting a crypto security.
She received $250k for an Instagram post to promote a token, without disclosing the paid nature of the post.
Sets precedent for all celebrities and crypto “influencers” who promote tokens.
— Miles Deutscher (@milesdeutscher) October 3, 2022
4.
The SEC charged Kim Kardashian with unlawfully touting a crypto security. She agreed to settle the charges and pay $1.26 million in penalties.
We just can’t believe she got paid $250,000 for this: pic.twitter.com/al3Ub0RXF7
— Morning Brew
(@MorningBrew) October 3, 2022
5.
The crypto Kim Kardashian promoted on her IG: pic.twitter.com/WUfI8NhmM0
— Namcios (@namcios) October 3, 2022
6.
Kim Kardashian got paid $250,000 and somehow lost $1.26 million, so she really got the full crypto experience https://t.co/JUmXHsH0Cq
— Tyler Conway (@jtylerconway) October 3, 2022
7.
Hey @KimKardashian, you may want to look into the SEC vs Ripple lawsuit. The #XRP community exposed Bill Hinman (former Director of Finance for the SEC) pretty much having done the same as you, yet they won’t charge their own corrupt employees!
— CryptoBullXRP (@CryptoBull2020) October 3, 2022
8.
Really glad to see this. Kim Kardashian being charged by the SEC for crypto securities fraud. The DOJ will have to pursue the case.
Don’t think Kardashian is the worst of the cryptoscammers, but I do think these cases are needed to put the fear of god into this industry. https://t.co/z1LgIliwwg
— Brianna Wu (@BriannaWu) October 3, 2022
9.
Kim Kardashian is paying a $1.3 million fine to the SEC after promoting crypto on social media. It’s just the tip of the iceberg of influencers pushing shady crypto projects: https://t.co/E3PSuaL2cJ
— Rob Price
(@robaeprice) October 3, 2022
10.
crypto twitter coming together to collectively roast kim kardashianpic.twitter.com/Wf0sd18xn4
— yzy.eth (@LilMoonLambo) October 3, 2022