Monday, October 03, 2022
By
Web Desk

Kim Kardashian’s crypto misadventure lands her in hot water

By
Web Desk
|
Kim Kardashian’s crypto misadventure lands her in hot water

Kim Kardashian has reportedly agreed to pay over $1 million to settle the US Securities and Exchange Commission (SEC) charges linked to a crypto promotion on her social media handles.

The SEC has charged Kim Kardashian for advertising EthereumMax on her Instagram page. It said she received $250,000 (£223,000) in exchange for advertising the cryptocurrency, without disclosing she was paid to do so.

The mother-of-four has agreed to pay $1.26m (£1.12m) in penalties. She has also agreed not to promote any crypto asset securities for three years.

Kardashian had already gotten heat from regulators and investors over the June 2021 post. She reportedly launched a private equity fund, Skky Partners, which she co-founded with Jay Sammons, a former partner at the investment firm Carlyle Group.

The reality TV superstar and influencer has settled Securities and Exchange Commission charges that she failed to disclose a payment she received for touting a crypto asset on her Instagram feed, the agency announced Monday morning.

“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,” Gary Gensler, chairman of the SEC, said in a news release.

In a statement, a lawyer for Kardashian said she is pleased to have resolved the matter: “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. 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.”