Kim Kardashian Pays $1.26 million to Settle Instagram Crypto Promo Charges (That’s a Lotta Bitcoin)

Kim Kardashian and crypto news. Those are two things we never thought we’d see paired together. And yet, this is the world we live in now.

The reality TV star-turned-entrepreneur has been monetizing her massive social media reach for a while now. But at some point along the way, she made a costly mistake. We know because the Securities and Exchange Commission brought charges against her that she failed to disclose a payment she pocketed for promoting a crypto asset on her Instagram account. Though Kardashian didn’t admit or deny the findings of the commission, she did agree to pay a cool $1.26 million to settle the case.

“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,” Gary Gensler, chairman of the SEC, said in a news release. He also felt the need to put a video on social media.

Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.

This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.

— Gary Gensler (@GaryGensler) October 3, 2022

(Personally, we think he’s just jealous he’s not as pretty or as pop culturally relevant as the Kardashian clan. This is as close to 15 minutes of fame as he’s going to get.)

In her defense, Kardashian’s attorney also released a statement saying, “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.”

The offending post was for EthereumMax’s crypto asset, for which Kardashian received a healthy $250,000 payment. As part of the settlement, Kardashian has agreed to refrain from further promotion of crypto securities for a full three years. That seems a little harsh to us; then again, if you’re getting financial advice from Kim Kardashian, maybe you do need to be protected from her powers of persuasion.

As one Twitter user pointed out, “Kim Kardashian got paid $250,000 and somehow lost $1.26 million, so she really got the full crypto experience.”

Kim Kardashian got paid $250,000 and somehow lost $1.26 million, so she really got the full crypto experience https://t.co/JUmXHsH0Cq

— Tyler Conway (@jtylerconway) October 3, 2022

It’s funny ‘cause it’s true.

Cover Photo: Robert Kamau / Contributor (Getty Images)