KimKardashian has been in hot water with federal regulators.
The SEC charged the reality TV star with failing to disclose a payment she received for promoting acryptocurrencies on her social media accounts.
Gary Gensler, chairman of the SEC, said in a news release that when celebrities endorse investment opportunities, it doesn't mean that those investment products are right for everyone.
A request for comment was not immediately responded to by representatives for the reality TV star.
The SEC said that KimKardashian agreed to pay over a million dollars to resolve charges over a promotion on Meta's social media. She will cooperate with an ongoing investigation and won't promote cryptocurrencies for three years.
The SEC said that, although she has built a media and lifestyle empire, she didn't admit to or deny the findings of the regulators.
In June of last year, she posted a promo for her company on her social media accounts. She asked her millions of followers if they were into crypts. This is not financial advice, but telling what my friends told me about the emperor maxim.
The investors sued her, former NBA star Paul Pierce and Floyd Mayweather Jr., accusing them of inflating the value of the asset.
The SEC said that she didn't report that she was paid $250,000 to publish a post about Emax. The post had a link to the website that gave users instructions about how to buy the token, the regulators said.
The SEC said that she failed to disclose the payment. She agreed to pay $260,000, which included the payment and interest, as well as the $1 million penalty, the agency said.
The report was contributed to by CNBC.
All Rights Reserved © 2024
