Influencers advertise a wide variety of products on Instagram and Co. – including Kim Kardashian. However, in a promotional campaign for a cryptocurrency, the reality TV star conceals his fee. This is now costing the 41-year-old dearly.
Reality TV star Kim Kardashian is fined millions for illegally promoting a cryptocurrency. As the US financial market regulator SEC announced, the 41-year-old agreed to a payment of 1.26 million dollars. The successful businesswoman advertised the EMAX cryptocurrency offered on the EthereumMax website on her Instagram page without making public that she received $250,000 for it.
The $1.26 million payment includes a $1 million penalty and a refund of the $250,000 payment plus interest, the agency said. Kardashian will also stop promoting cryptocurrencies for three years.
“Ms. Kardashian’s case serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are getting for promoting investment in securities,” said SEC Chairman Gary Gensler. The director of the in-house enforcement unit, Gurbir Grewal, also emphasized: “Investors have a right to know whether the advertisement for a security is impartial. Ms. Kardashian has failed to disclose this information.”
For years, the SEC has been warning investors about dubious investment tips from celebrities with a high reach on the Internet – especially in the case of highly speculative and often laxly regulated crypto assets. In 2018, the US Securities and Exchange Commission had already fined boxing star Floyd Mayweather and hip-hop producer DJ Khaled for doing unfair paid promotions for digital currency transactions on their social media channels.
Kardashian rose to fame with the reality TV show Keeping Up With the Kardashians. In recent years she has built up a veritable company empire, with clothing and cosmetics brands as flagships of her portfolio. In September, the 41-year-old also announced the founding of an investment company called SKKY Partners. The US financial magazine “Forbes” estimates her fortune at 1.8 billion dollars.
