Kim Kardiashian lip service admits guilt, but who cares? She will have to pay.
Posted at 9:48 a.m.
Updated at 10:59 a.m.
The reality star has indeed agreed to pay a hefty fine of 1.26 million US dollars (1.72 million Canadian dollars) to settle a lawsuit initiated by the Securities and Exchange Commission.
The US federal financial markets regulator blamed Kardashian for promoting a cryptocurrency asset, EMAX tokens, on Instagram without saying she was paid US$250,000 (342 C$000) to do so.
Under the terms of the settlement, Kim Kardashian refuses to “admit or deny” the SEC’s findings. However, she has pledged to stop promoting any cryptocurrency company for the next three years.
Kim Kardashian is one of Instagram’s most followed celebrities, with 301 million subscribers.
“This case is a reminder that when celebrities or influencers endorse investment products, including cryptocurrency agencies, it doesn’t mean those products are right for all investors,” the SEC spokesperson said. , Gary Gensler, in a statement. “Ms. Kasdashian’s case should also serve as a warning to celebrities and others that they are required by law to disclose whether and how much they have been paid for such promotion. »