Kim Kardashian Forced To Pay Over $1 Million To Settle Charges From SEC For Shady Crypto Post
Kim Kardashian is worth nearly $2 billion, so a $1.26 million fine is like a $100 parking ticket to her, but still… it’s nice to see some accountability.
For those who don’t know, the 41-year-old reality star was being investigated by the U.S. Securities and Exchange Commission for promoting cryptocurrency brand EthereumMax on her Instagram back in June of 2021.
The Kardashians star mentioned EthereumMax via her Instagram Story last summer, asking her followers, ‘Are you guys into crypto???? … This is not financial advice but sharing what my friends just told me about the Ethereum Max token! A few minutes ago Ethereum Max burned 400 trillion tokens- literally 50% of their admin wallet giving back to the entire E-Max community.’
Now she did use the hashtag #ad in the post, which might have been enough if she was trying to sell people on makeup or skincare, but it’s not enough for when someone is pushing investment opportunities. There are stricter rules surrounding these posts, and Kim did not follow them.
After a lengthy investigation, Kim agreed to settle the dispute and pay $1.26 million in penalties.
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. We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.
For those wondering, Kim was paid a cool $250,000 for the Insta Story. That’s right, she made $250,000 for just a post in her stories! This wasn’t even on her main page! She probably makes at least $1 million when she shares something on her actual account.
Can you imagine making $250,000 for posting an ad with a total word count of 47? Absolutely insane. It’s a cruel world we live in. No doubt about it. A world where followers on social media rule everything.
If someone asked me, would you rather have 10 million active followers on Instagram, or a $500,000 check right now, I’d take the 10 million followers because I know they’d end up being worth more.