Kim Kardashian is being fined over $1 million for promoting cryptocurrency on her Instagram.
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00:00Kim Kardashian agreed to pay a $1.26 million fine to the Securities and Exchange Commission
00:05for promoting a cryptocurrency on social media without revealing that she had been
00:09paid for the advertisement. The SEC said Kardashian failed to disclose that she was
00:14paid $250,000 to boast on her Instagram account about a crypto token called EMAX.
00:19In June of 2021, she posted to her Instagram story saying, quote,
00:23This is not financial advice, but sharing what my friends have just told me about the Ethereum
00:28She proceeded to include a link to a related website and instructions for potential investors.
00:33This follows a string of celebrity crypto endorsements, which the SEC has warned
00:37investors about, saying people should not buy an investment solely based on the backing of
00:41a celebrity. SEC Chair Gary Gensler said, quote,
00:44Ms. Kardashian's case also serves as a reminder to celebrities and others that the law requires
00:49them to disclose to the public when and how much they are paid to promote investing in securities.