Reality TV star Kim Kardashian launched a private equity fund, Sky Partners, which she co-founded with Jay Sammons, a former partner at investment firm Carlyle Group.
Photo by James Devaney/GC Images via Getty Images
Kim Kardashian’s crypto misadventure has landed her in hot water with federal regulators.
The agency announced Monday morning, the reality TV superstar and influencer has settled allegations from the Securities and Exchange Commission that she failed to disclose payments she received for providing information about crypto assets on her Instagram feed.
SEC Chairman Gary Gensler said in a news release, “This case is a reminder that, while celebrities or influencers endorse investment opportunities, including crypto asset securities, it does not mean that they are investment products for all investors. are right for.” ,
Representatives for Kardashian did not immediately respond to a request for comment.
The SEC said Kardashian, who is reportedly worth $1.8 billion, agreed to pay $1.26 million to settle fees over the promotion of Ethereummax’s crypto asset on Meta’s Instagram. The regulator said that it will also cooperate with the ongoing investigation and has agreed not to promote crypto securities for three years.
However, the Kardashians, who have built a media and lifestyle empire, neither accepted nor denied the regulator’s findings, the SEC said.
Kardashian is already feeling the regulatory heat over her EthereumMax promo, which she posted to Instagram in June of last year. She began the post by asking her millions of followers, “Are you into crypto??? This is not financial advice, but rather what my friends told me about the Ethereum MAX token.”
Investors sued him, former NBA star Paul Pierce and superstar boxer Floyd Mayweather Jr. earlier this year over their promos for EthereumMAX, accusing them of artificially inflating the value of assets.
The SEC said on Monday that Kardashian failed to report that she was paid $250,000 for publishing a post about the EMAX token, a crypto asset offered by EthereumMax. The regulator said that the post, which contains the hashtag “#ad”, included a link to the EthereumMax website, instructing users on how to purchase the token.
The SEC said their failure to disclose the payment was a violation of federal securities laws. The agency said it agreed to pay $260,000, which includes payments she received, plus interest, in addition to a $1 million fine.