Kim Kardashian Wants To Avoid Conflict And Agrees To Pay $1.26 Million To Settle SEC Charges

Kim Kardashian knows when she’s wrong and she’s a big enough girl to admit it. Even though the reality TV star did not receive that amount of money from running the promotion in the first place, she has agreed to pay it uncomplaining.

Kim Kardashian – Reportedly Offered Full Cooperation With the SEC Investigation

Kim Kardashian has agreed to settle charges from the US Securities and Exchange Commission (SEC) “for touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion.”

The report was released on Monday, which stated that the Keeping Up With the Kardashians star “agreed to settle the charges, pay $1.26 million in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation”. However, the TV personality did not admit or deny the findings published by the SEC.

According to a report published by the group, the 41-year-old violated protocols when she didn’t tell her followers that she was paid a quarter of a million dollars to run a promotion for EthereumMax’s EMAX tokens, a crypto asset security product, when she shared it. She also included a link to the company’s website for anyone interested in checking it out.

“Ms. Kardashian is pleased to have resolved this matter with the SEC,” the star’s lawyer said in a statement according to PEOPLE. “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 lawyer added. “The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits.”

What Did Kim Kardashian Do To Attract the Interest Of SEC

Business Insider reported that the ad, which was what led to the investigation and subsequent charges, was shared to Kardashian’s Instagram Story in June 2021 and read, “Are you guys into crypto???? … This is not financial advice but sharing what my friends just told me about the Ethereum Max token!”

“A few minutes ago Ethereum Max burned 400 trillion tokens- literally 50% of their admin wallet giving back to the entire E-Max community,” she added at the time.

The SEC explained in their Monday release that the reality star “violated the anti-touting provision of the federal securities laws,” and that the hefty payment she agreed to (“without admitting or denying the SEC’s findings”) includes “approximately $260,000 in disgorgement, which represents her promotional payment, plus prejudgment interest, and a $1,000,000 penalty.”

“Kardashian also agreed to not promote any crypto asset securities for three years,” they said.

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