Kim Kardashian will pay a $1.26 million fine for backing a crypto asset, in a case that officials said was part of a widespread problem among celebrities.
Kardashian will pay the fine and co-operate with the US Securities and Exchange Commission in its ongoing investigation into cryptocurrencies that are backed by celebrities.
During summer 2022, many celebrities gave their backing to new and risky cryptocurrencies and the companies offering them. The SEC suggested that further punishment could come to other celebrities as part of that ongoing investigation.
“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors,” said SEC Chair Gary Gensler. We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.
“Ms Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities.”
The fine given to Kardashian is made up of the $260,000 she received for promoting the currency, plus a $ million penalty. She also agreed not to promote any crypto assets for three years.