Kim Kardashian Pay $1.3 MILLION Fine
Why was Kim Kardashian just made to pay $3 million?
It turns out she’s been doing some shady things with crypto. Kim has agreed to pay exactly 126 million to settle allegations from the Securities and Exchange Commission that she broke US rules by touting a crypto token without disclosing that she paid for the promotion.
The reality star charged because she failed to reveal that she paid $250,000 to post on her Instagram about emacs tokens.
In addition to paying the fine, Kim agreed to cooperate with the CEC’s ongoing investigation and agreed to not promote any crypto securities for three years.
CEC Chair Gary Gensler said 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.
Kenzler also tweeted that any celebrity or influencer incentives aren’t necessarily aligned with yours and that the public shouldn’t confuse the skills of celebrities with the very different skills needed to offer appropriate investment advice.
But Kim isn’t the first celebrity to pay a CEC fine for using their fame to push cryptocurrencies. In 2018, Floyd Mayweather and DJ Khaled both paid fines for pushing cryptos.
Floyd was paid $300,000 and fined over $600,000, while Culled was paid $50,000 and fined 1500.
Not to mention Steven Segal, who was fined more than 3000 for doing the same thing in 2020.
So what was a post that cost her $3 million?
On the 21 June, Kim wrote on Instagram, Are you guys into crypto? That is not financial advice, but my friend tells me about the Ethereum Max token.
While it might seem pretty obvious that she paid to write that and even included the hashtag ad, the CEC said that her 225,000,000 Instagram followers weren’t properly made aware that she was being paid for the ad.
But why did Kim find so much money compared to the other celebrities who have done the same thing?
Well, it’s because the CEC is using her as an example and wants to make it clear that they are taking a tougher stance against celebrities.
The 26-year-old model was among several celebrities to post about the fraudulent music event, and she paid 275 $0 to endorse the festival in 2017.
She sued in August 2019 by Gregory Mesa, who argued that not only did Kendall fail to disclose to her followers that she was paid to advertise the Fire Festival.
She led them to believe that the festival would be filled with famous models on an exotic private island with first-class culinary experiences and a luxury atmosphere.
Kendall was also caught intentionally misinforming the public by claiming that her brother-in-law Kanye West would be performing at the event after she tweeted so hyped to announce my good music family as the first headliners for the fire festival.
She even provided her followers with a promotion code that they could use when purchasing tickets to get on the list of artists and talents after Party on Fire.
K in that same tweet, which kind of makes you cringe when you think about how disastrous that festival turned out to be.
And yet Kendall has managed to get herself in even more hot water this year, this time for her tequila company, Kendall Jenner’s eight tequila.
Aside from being accused of cultural appropriation, the model is now being sued by a Texas-based brand called Tequila 502.
The lawsuit is for trademark infringement, false designation of origin, and unfair competition, alleging that her brand copied Tequila 500 and two’s logo and color scheme.
The branding is so similar that instead of eight one eight tequila, an image of tequila five one two was used for an in-game purchase in Kim Kardashian’s Hollywood mobile game.
So one eight Tequila either intentionally used the wrong image to blur the lines between the two products.
So it looks like Kendall’s venture into the spirits industry might not have been the best move. But either way, we’ll have to wait and see how the lawsuit pans out. That’s all the story we have for today.
