Kim Kardashian agreed to pay more than $1 million to settle SEC charges linked to the Crypto that she posted on her Instagram.
According to CNBC, the agency announced Monday morning that Kim has settled Securities and Exchange Commission charges that she failed to disclose a payment she received for touting a crypto asset on her Instagram.
“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,” Gary Gensler, chairman of the SEC, said in a news release.
“Kardashian fully cooperated with the SEC from the very beginning, and she remains willing to do whatever she can to assist the SEC in this matter. She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits,” the statement said, according to CNBC.
The SEC said that her failure to disclose the payment was a violation of federal securities laws.
“Congress passed a law many decades ago called the Securities Act, and it was to protect the public,” Gensler told CNBC’s “Squawk Box” on Monday morning. “Part of that law said that if you tout a stock, you have to disclose if you’re getting paid.”