Kim Kardashian paid a $1.26 million penalty for advertising cryptocurrencies without disclosing she was paid to do so.
Monday morning, the United States government announced that it had charged reality show icon Kim Kardashian with violations of securities law, after she promoted a cryptocurrency on her Instagram account without disclosing that she was paid to do so. If you were wondering if the new season of Hulu’s The Kardashians would take place behind bars, however, you needn’t worry. It was also announced that she settled the charges with the Securities and Exchange Commission (SEC) by paying a $1.26 million fine, according to a report by TV Line.
The 41-year-old, who is reportedly worth $1.8 billion, was paid approximately $250,000 to promote EthereumMax (EMAX) tokens in a June 2021 post to her 330 million followers. At the time, crypto companies were spending tens of millions in advertising to promote their currencies, often enlisting celebrities like Kim Kardashian and Matt Damon as spokespersons. With the recent collapse of crypto currencies worldwide, the SEC is cracking down on individuals and companies that used the crypto boom to line their pockets while playing fast and loose with securities laws.
As part of the settlement, Kim Kardashian agreed to pay a $1.26 million fine, including $260,000 in disgorgement (the return of any profits she made by promoting the crypto) and a $1 million penalty. She agreed not to promote any cryptocurrency asset securities for three years, but did not admit wrongdoing regarding the charges. “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,” her lawyer said in a statement, claiming she is assisting the government in their investigation into crypto companies.
For the record, her soon-to-be-ex-husband Kanye West has not yet commented on the controversy, and seems to be picky about mentioning his ex Kim Kardashian in his posts, after getting suspended from both Twitter and Instagram over threatening posts about her relationship with former Saturday Night Live host Pete Davidson. Kim and Kanye share four children together, and were married in 2014. Kim is currently in the process of divorcing Kanye, her third marriage after previously being married to Damon Thomas (2000-2004) and Kris Humphries (2011-2013).
Kim Kardashian first burst onto the celebrity scene in 2007, when the socialite’s sex tape with rapper Ray J hit the internet. Later that year, the reality show Keeping Up With The Kardashians premiered on E!, and ran for 20 seasons and 293 episodes. The entire Kardashian family appeared on the show, including sisters Khloé and Kourtney and brother Rob, as well as half-sisters Kendall and Kylie Jenner; siblings their mom Kris had with Caitlyn Jenner (formerly Bruce).
After ending the show in 2021, a reboot, titled simply The Kardashians, premiered on Hulu in April of this year, and is currently in production on a second season.
Although she now finds herself in legal trouble, Kim Kardashian has spent the last few years advocating for prison reform and clemency. The First Step Act, which instituted major reforms to the prison and parole system, was signed into law by President Donald Trump with the advocacy of Kim and Kanye.
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