Kim Kardashian's $1.26 million sponcon fine is a warning shot to stop shady crypto shilling

Kim K gets paid for her social media posts. She is now paying.

Reality TV personality KimKardashian has been hit with a $1.26 million fine by the US Securities and Exchange Commission for failing to disclose her partnership and payment for promoting cryptocurrencies on her social media accounts.

According to a Monday morning press release from the SEC, Kim Kardashian was paid $250,000 to promote the Emax token. According to the SEC, the payments were made through an unknown middleman. She was being paid to do so, but she didn't tell her followers.

The Instagram post from Kim Kardashian that resulted in her fine. Credit: Mashable Screenshot

At the time of her promotion, she had over 200 million followers on her social media accounts.

Gary Gensler, chair of the SEC, said in a statement that when celebrities endorse investment opportunities, it doesn't mean that those investment products are right for everyone. We encourage investors to think about their own financial goals when making an investment decision.

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Without admitting or denying the findings of the SEC's investigation, she agreed to pay the amount. A $1 million penalty and payment for disgorgement are included in the settlement. The reality TV star agreed to not promote anycryptocurrencies for 3 years. She will cooperate with the SEC investigation.

The hammer seems to be hitting celebrities who promote cryptocurrencies to their followers. More than that, the SEC's statement hints at the possibility of more celebrities being fined for promoting EMAX. A class action lawsuit has been filed against Kim, Floyd, and Paul for their promotion of thecryptocurrencies.

The SEC's director of division of enforcement said in a statement that the federal securities laws are clear that any celebrity who promotes acryptocurrencies must reveal the nature, source, and amount of compensation they received in exchange for the promotion. Ms.Kardashian failed to tell investors that the publicity of a security is biased.