Kardashian in bit of trouble
The Canadian Press - Oct 03, 2022 - Business Buzz

Photo: The Canadian Press

The long list of celebrities promoting cryptocurrencies just got shorter. Kim Kardashian is being barred from doing so for three years—and will pay a $1 million fine—to settle federal charges that she recommended a crypto security to her 330 million Instagram followers without making clear that she was paid to do so.

The reality TV star also must give up the $250,000 she was paid for the Instagram post about Ethereum Max tokens, plus interest, according to a Securities and Exchange Commission settlement announced Monday.

Kardashian is the latest celebrity to get ensnared in regulations that require full disclosure by people getting paid to promote financial products.

In 2020, actor Steven Segal agreed to pay more than $300,000 as part of a similar settlement with the SEC, which also banned him from promoting investments for three years.

In 2018 the SEC settled charges against professional boxer Floyd Mayweather Jr. and music producer DJ Khaled for failing to disclose payments they received for promoting investments in a digital currency.

Many celebrities and athletes regularly promote crypto through advertisements on TV and online in ways that do not violate any law. Matt Damon, Tom Brady, Reese Witherspoon and Gwyneth Paltrow are among those who have used their fame to spread enthusiasm for cryptocurrencies.

SEC Chair Gary Gensler said in a statement that the Kardashian settlement “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.”


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