Kim Kardashian will pay $1.26 million in a settlement after the Securities and Exchange Commission investigated her for allegedly failing to disclose that she was paid to promote cryptocurrency on Instagram.
According to the Associated Press, Kardashian agreed to pay the sum (and not to promote crypto asset securities for the next three years) after the SEC discovered that she was given $250,000 to publish a post on Instagram about EMAX tokens, a crypto asset by EthereumMax. Her post reportedly contained a link to the EthereumMax website, which included instructions for investors to purchase the tokens, the outlet reports.
"The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion," said Gurbir Grewal, director of the SEC's enforcement division, in a statement to AP News.
Emma McIntyre/Getty Images Kim Kardashian will pay $1.26 million in a settlement after the SEC investigated her Instagram post about cryptocurrency.
An official SEC release states that Kardashian settled the claim "without admitting or denying the SEC's findings."
A representative for Kardashian provided EW with a statement from her lawyer saying she is "pleased to have resolved this 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," her lawyer's statement read. "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."
Following the end of her long-running E! show Keeping Up With the Kardashians in 2021, Kardashian and her famous family shifted their reality TV empire to Hulu for the new series The Kardashians, which is currently airing its second season on the streaming service. The 41-year-old also operates several businesses, including her SKIMS and SKKN clothing and skin-care lines.
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