Kim Kardashian has a lot going on lately. Between the sex tapes with her and Ray J and now this legal feud. I don’t know which is worse. It’s a thin line in the marketing world. Especially for celebrities because there’s always someone waiting for them to mess up so they can receive a nice settlement check. And it looks like it’s no different for the reality star.
Recently, the SKIMS founder posted a link on her IG to EthereumMax; a digital company that offers crypto asset security . Additionally, the website provides instructions for potential investors to purchase tokens. However the mother of four failed to add the disclaimer to the post that tells viewers and fans that she was being paid $250K to make that post.
Overall, Kim has agreed to pay the million dollar fine.
“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,” said SEC Chair Gary Gensler. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”SEC
The SEC found that Kardashian violated the anti-touting provision of the federal securities laws. Kardashian agreed to the order without admitting or denying the SEC’s findings.
The settlement includes a $1 million fine and forfeiting the $250,000 payment she received, plus interest.
Gensler tweeted that “any celebrity or influencer’s incentives aren’t necessarily aligned with yours.” He said the investing public shouldn’t confuse the skills of celebrities “with the very different skills needed to offer appropriate investment advice.”