Enlarge / Kim Kardashian arrives to ABC's "Good Morning America" on September 20, 2022, in New York City. (credit: Getty Images | James Devaney )
Kim Kardashian will pay a $1.26 million penalty for touting a crypto security without disclosing that she was paid $250,000 to promote the token, the Securities and Exchange Commission announced today. Kardashian agreed to the payment to settle the charges and "agreed to not promote any crypto asset securities for three years," the SEC said.
"Kardashian's failure to disclose this compensation violated Section 17(b) of the Securities Act, which makes it unlawful for any person to promote a security without fully disclosing the receipt and amount of such consideration from an issuer," the SEC order said. This law is known as the "anti-touting" provision.
In June 2021, Kardashian promoted an EthereumMax offering on her Instagram account by posting an image containing the following text:
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