Kim Kardashian has settled with the Securities and Exchange Commission for over a million dollars after the government program alleged that she had made a major mistake when promoting the EthereumMAX crypto coin.
There’s no denying that 2021 was a big year for cryptocurrency. For the first time since its inception, the concept found major public traction and began to infiltrate mainstream culture like never before. While the rush was very exciting for those involved, it also meant that more and more people were jumping onto the hype train a little faster than they might have otherwise.
Kim Kardashian was one of those names, and while she never admitted to being guilty of anything, she has agreed to pay the SEC the money they’ve asked for in relation to an EthereumMAX advertisement she posted on Instagram in June 2021.
Kim Kardashian pays the SEC over a million dollars after crypto ad controversy
The post in question was featured on Kardashian’s IG story and started off with “Are you guys into crypto? This is not financial advice, but sharing what my friends just told me about the Ethereum Max token!”
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While the ending of the post did contain the “#ad” that is required by Meta (and by the U.S. government) to discern sponsored posts from regular recommendations, the SEC deemed that she did not take the appropriate care to make it clear she had been paid for the promotion.
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
SEC Chair Gary Gensler took to Twitter and used the moment to remind everyone that just because a celebrity endorses a product or an opportunity doesn’t mean it’s right for every investor.
Kim K isn’t alone in crypto-based legal troubles, as investors previously sued her as well as basketball Hall of Famer Paul Pierce, and legendary boxer Floyd ‘Money’ Mayweather over “artificially inflating” the value of the same coin earlier this year.