Home > Legal Updates > SEC Penalizes Kim Kardashian Over $1 Million for Paid Crypto Post

SEC Penalizes Kim Kardashian Over $1 Million for Paid Crypto Post

The Securities and Exchange Commission (SEC) settled with Kim Kardashian over allegations she violated Section 17(b) of the Securities Act (the “Act”) by publishing an Instagram post promoting the crypto-currency, EthereumMax token (EMAX), to her 250 million followers, without adequate disclosures. Kardashian received approximately $250,000 for this post.Under Section 17(b), it is unlawful for any person to publish or promote “any communication which describes a [purchasable] security for a consideration…without fully disclosing the receipt…of such consideration and the amount thereof.” Section 17(b)’s mandate to include the amount paid for a securities post goes over and above the more widely known Federal Trade Commission (FTC) requirement that all paid social posts be clearly and conspicuously disclosed as advertising. Read more…