Whoops—Kim Kardashian seems to have found herself in a bit of trouble with the Securities and Exchange Commission (SEC).
Last week, the reality star was busy promoting the launch of SKIMS bras and trying to dodge the snide remarks about her "minimalist" Skkn by Kim home line, but this week, the reality star is in a new predicament regarding a crypto token sold by EthereumMax.
What's happening? We have the intel.
Kim Kardashian crypto controversy: what's going on
In June 2021, Kardashian promoted the EthereumMax tokens on her Instagram stories.
"Are you guys into Crypto," she wrote. "This is not financial advice, but sharing what my friends just told me about the Ethereum Max token."
The post continued, "A few minutes ago Ethereum Max burned 400 trillion tokens—literally 50% of their admin wallet giving back to the entire e-max community."
She included a variety of hashtags, including #ad, before offering her followers a chance to swipe up for more information. However, the fact that she did not indicate that she was being paid to promote the tokens is ultimately what landed her in trouble.
Today we announced charges against Kim Kardashian for promoting a crypto security offered by EthereumMax without disclosing the payment she received for the promotion. Kardashian agreed to settle the charges, pay $1.26 million, and cooperate with the investigation.October 3, 2022
"Ms. Kardashian’s case also 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," Gary Gensler, the SEC chair, said in a statement.
The SEC announced a $1.26 million settlement on October 3 with Kardashian for not indicating that she was receiving payment. The SEC said the influencer was paid by EthereumMax through an intermediary, but has been cooperative throughout the investigation process.
Patrick Gibbs, one of her attorneys, told The New York Times that Kardashian "pleased to have resolved this matter with the SEC" and is now able to move forward with her new business projects (i.e. many a SKIMS launch).
Overall, $1.26 million is a drop in the bucket for one of the richest Kardashian family members—who is reportedly worth over $1 billion—but it is certainly an expensive lesson to learn. Full disclosure goes a long way.
Danielle is a writer for woman&home and My Imperfect Life, covering all-things news, lifestyle and entertainment.
The heart of her time at Future has been devoted to My Imperfect Life, where she's been attuned to the cosmos, new TV shows and relationship trends.
Before her time at Future, Danielle was the editor of Time Out New York Kids and a news editor at Elite Daily. Her work has also appeared in Domino, Chowhound, amNewYork and Newsday, among other outlets.
When Danielle is not working, you can usually find her reading a book, coffee at hand, or attempting a new recipe. (Recommendations always welcome!)
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