WASHINGTON, Oct 3 (Reuters) – Kim Kardashian has agreed to settle charges of unlawfully touting a crypto security and to pay $1.26 million in penalties and associated fees, the U.S. Securities and Exchange Commission said on Monday.
Kardashian, a reality television star and influencer, failed to disclose that she was paid $250,000 to publish a post about EMAX tokens, the crypto asset security being offered by EthereumMax, on her Instagram account, the SEC said in a statement.
Under U.S. law, people who tout a certain stock or crypto security need to disclose not only that they are getting paid, but also the amount, the source and the nature of those payments, SEC Chair Gary Gensler said.
“This was really to protect the investing public – when somebody is touting that stock and whether that’s a celebrity or an influencer or the like, and that’s at the core of what this is about,” Gensler said in an interview with CNBC.
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