Kim Kardashian Pays $1.26 Million to Settle Crypto Crisis with SEC

Kardashian, who already passed the “baby bar” First-Year Law Students’ Examination, didn’t mention she was shilling for crypto

Kim Kardashian agreed to pay $1.26 million to the Securities and Exchange Commission for failing to disclose that she was being paid to promote a cryptocurrency.

As well as paying the fine, the SEC said Monday that Kardashian had agreed to cooperate with its ongoing investigation.

Kardashian caught the SEC’s attention when she failed disclose that she was paid $250,000 to publish a post about EXMX tokens in June of 2021, a crypto asset from EthereaumMax.

“The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion,” Gurbir Grewal, director of the SEC’s division of enforcement, said in a press release Monday.

Others were more frank.

“Also, when celebrities and influencers endorse a crypto thing you’ve never heard of, it definitely means they got paid to do it?” wrote Bloomberg‘s Matt Levine in his MoneyStuff newsletter. “Honestly if you get an Instagram post from an influencer promoting a crypto thing and not disclosing that she was paid for it, the investment opportunity is to send a whistleblower letter to the SEC.”

The SEC found that Kardashian violated the anti-touting provision of federal securities laws. Kardashian agreed to the charge without admitting or denying the SEC’s findings.

“Ms. Kardashian is pleased to have resolved this matter with the SEC,” a lawyer for Kardashian said in a statement. “Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter. She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits.”

And what about Kardashian’s pursuit of becoming lawyer?  Fans of her show will recall that she passed California’s “baby bar,” or First-Year Law Students’ Examination, on her fourth try late last year. What impact could an SEC charge have on her potential legal career?

It’s an issue that would definitely come up during her admission to the bar, defense attorney Duncan Levin of Levin & Associates, PLLC told the New York Post. “This is a very serious issue,” he said. “This is a violation of securities laws and when aspiring lawyers go before the bar they are judged on their character.”

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