Kim Kardashian is paying a $1.26 million fine to the Securities and Exchange Commission to settle civil charges after the reality TV star touted a crypto asset on her Instagram account.
Kardashian failed to disclose she was paid $250,000 to do the post.
The settlement includes a $1 million fine and forfeiting the $250,000 payment, plus interest. Kardashian is also using this opportunity to work with the SEC to education others about this disclosure issue.
Kardashian posted on June 13, 2021, “This is not financial advice but sharing what my friends told me about the ethereum max token!”
She added different hashtags, including #ad, along with #emax, #disrupthistory, and others. The #ad is not sufficient to comply with SEC laws in regards to touting investments according to the SEC.
Over the years I’ve shared numerous posts and have been interviewed dozens of times on this topic. If you’re an influencer and have questions about FTC and SEC requirements, especially in a web3 world (more stringent because of investments/securities), start here.