Kim Kardashian fined $1.3 million

Kim Kardashian is being fined over $1 million for promoting cryptocurrency on her Instagram.

Transcript

00:00Kim Kardashian agreed to pay a $1.26 million fine to the Securities and Exchange Commission

00:05for promoting a cryptocurrency on social media without revealing that she had been

00:09paid for the advertisement. The SEC said Kardashian failed to disclose that she was

00:14paid $250,000 to boast on her Instagram account about a crypto token called EMAX.

00:19In June of 2021, she posted to her Instagram story saying, quote,

00:23This is not financial advice, but sharing what my friends have just told me about the Ethereum

00:28She proceeded to include a link to a related website and instructions for potential investors.

00:33This follows a string of celebrity crypto endorsements, which the SEC has warned

00:37investors about, saying people should not buy an investment solely based on the backing of

00:41a celebrity. SEC Chair Gary Gensler said, quote,

00:44Ms. Kardashian's case also serves as a reminder to celebrities and others that the law requires

00:49them to disclose to the public when and how much they are paid to promote investing in securities.