Kim Kardashian took a hit to the wallet (albeit a slight one for her) after the Securities and Exchange Commission demanded she pay $1.26 million after she failed to tell followers she was paid to promote a crypto asset.
Kardashian was allegedly paid $250,000 to post about EMAX tokens on Instagram, a crypto asset offered by EthereumMax. The post also included a link to the EthereumMax website where people could buy the tokens.
SEC Chair Gary Gensler said per TMZ, "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."
Michael Rhodes, one of Kim's lawyers, released a statement after the decision was made stating:
"Ms. Kardashian is pleased to have resolved this matter with the SEC," adding that Kim "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," the statement concluded.
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