Kim Kardashian Pays $1.26 Million in Crypto Settlement

Kim Kardashian has recently gotten into trouble for promoting a cryptocurrency on Instagram without disclosing that it was a paid partnership. Along with paying the hefty settlement, she won’t be allowed to post anything that promotes cryptocurrency for three years.

The original brand deal with Ethereum was for $250,000, but it looks like she won’t be seeing any of that. Her original Instagram story was in June of 2021, where she said “are you guys into crypto? This is not financial advice but sharing what my friends just told me about the Ethereum Max token!” After giving a statistic about the token, she typed numerous hashtags along with “#ad,” but by saying she was motivated to post about it because her friends told her to is misleading.

Even worse, since her post, the coin’s value has plummeted drastically. She has been fined by the Securities and Exchange Commission (SEC) for not explicitly stating that the post was sponsored by people working for Ethereum. 

“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 the chair of the SEC, Gary Gensler, in a statement. In true Kardashian fashion, she has not denied or confirmed the allegation.

One of her lawyers, Patrick Gibbs, said in a statement: “Ms. Kardashian was pleased to have resolved this matter with the SEC” along with saying “the agreement has allowed her to move forward with her business pursuits.”

Kardashian is known for her reality show with her family, “The Kardashians,” which is available on Hulu, as well as her multiple brands: SKIMS, which is a shapewear brand, and her skincare line, SKKN. It’s safe to say that for Kardashian, investing in cryptocurrency isn’t a necessity, as she has multiple other investments that are directly linked to her.

Her net worth is estimated to be $1.8 billion, which she has built in less than 20 years. She said in an interview with Variety that she’s been a businesswoman long before the show’s release, when she worked in a boutique with her family. 

Either way, this fine probably won’t make much of a difference to her own financial stability. However, her misleading post very well could have poked a hole in some peoples’ pockets who look towards her for advice. Celebrities get away with a lot, but it’s good to know that at least there are some regulations surrounding cryptocurrency.