In 2022 this reality television star paid American financial regulators about $1.26 million over a single Instagram post about a cryptocurrency token.
The full story
On 3 October 2022 the US Securities and Exchange Commission announced that Kim Kardashian had agreed to pay approximately $1.26 million to settle charges of touting a crypto asset security, EthereumMax, in an Instagram post on 13 June 2021 without disclosing the $250,000 payment she received for it. The settlement was about $260,000 in disgorgement inclusive of prejudgment interest, plus a $1 million penalty. The charge was under the anti-touting provision, Section 17(b) of the Securities Act — a failure to disclose payment. The SEC did not charge fraud. She neither admitted nor denied the findings and agreed not to promote crypto asset securities for three years. Chair Gary Gensler said the law requires celebrities to disclose when and how much they are paid to promote a security.
The clues we handed out
— The regulator did not say the post was false. It said she had failed to disclose that she was paid to make it.
— She had been paid $250,000 for it.
— The settlement was roughly $260,000 returned with interest, plus a $1 million penalty.
— She also agreed not to promote crypto assets for three years, and neither admitted nor denied the findings.
— Initials: K.K.
How this case played
ALLEGEDLY* edition No. 83. Three strikes to name Kim Kardashian, with a free clue
unlocked after every miss.
*A blind item you can check. Every puzzle is drawn from the public record —
court records, official rulings, and moments that unfolded on live television — and the
records are linked above. Allegedly.
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