Kim Kardashian fined $1.26m for promoting cryptocurrency scam

The United States Securities and Exchange Commission has charged Kim Karsashan, the reality star and entrepreneur, with promoting a cryptocurrency on her Instagram account without disclosing how much she was paid to do so.

The agency fined fined Kardashian $1.26m, for partaking in a cryptocurrency promotion which was later described as a “pump and dump” scheme.

Kardashian was said to have promoted EMAX crypto tokens on her Instagram page, informing her users that she was introduced to it by her friends.

Whereas, she was paid $250,000 by EthereumMax to promote EMAX crypto tokens. Her failure to inform followers that the content was a promotion led to the fine.

“Kardashian’s post contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens.” The US SEC said.

The commisson’s head, Gary Gensler, further stated, “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.”

Gensler explained that the fine was a reminder to celebrities to always disclose when their social media content is a promotion.

He said, “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.”

Meanwhile, Kardashian’s spokesperson, said, “Ms. Kardashian is pleased to have resolved this matter with the SEC.

The spokesperson added, “She wanted to get this matter behind her to avoid a protracted dispute.”