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Kim Kardashian slapped with $1 million fine for unlawful crypto ad

 (Kim Kardashian / Instagram)
(Kim Kardashian / Instagram)

Kim Kardashian has been slapped with a $1 million fine by the US markets watchdog for unlawful crypto advertising.

The model and businesswoman was paid $250,000 to publish a post to her Instagram page advertising EthereumMax crypto tokens. The US Securities and Exchange Commission said Kardashian posted a link to the EthereumMax website but failed to disclose the payment she received for the promotion.

SEC chair Gary Gensler said: “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.”

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Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said: “Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information."

The SEC said Kardashian agreed to pay $1.26 million, which which represents her promotional payment, plus prejudgment interest, and a $1,000,000 penalty. Kardashian also agreed to not promote any crypto asset securities for three years.

Gensler posted a video to YouTube warning investors not to make investor decisions based on the recommendations of a celebrity or influencer.

“Celebrity endorsements don’t mean than an investment product is right for you, or even, frankly, that it’s legitimate,” he said in the video.

“We might enjoy watching a celebrity playing on a basketball court, starring in reality TV show or movie…we shouldn’t confuse those skills though, with the very different skills needed to offer appropriate investment advice.”