It looks like Kim's lawyers delivered a pretty good deal for the reality TV star - she's worth $1.8 billion, and has reached an agreement to settle the matter for $1.26 million.
She also does not have to admit any wrongdoing.
ALL THIS STEMS FROM WHEN SHE VIOLATED US LAW BY PROMOTING A COIN ON INSTAGAM, WITHOUT DISCLOSING THAT SHE WAS PAID TO DO IT.
Her 'endorsement' was pretty cringeworthy, but I'm probably not in her target demographic. The post said: "ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.”
While the settled-on amount is too low to impact a billionaire, the SEC's newest statement on the matter was surprisingly positive, saying in part; "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".
“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” Said SEC Chair Gary Gensler.
ONE INTERESTING BIT...
There's been some emphasis by the SEC on Kim assisting them 'on "other cases'" - but this is the only time she has ever promoted a cryptocurrency.
Explained in the SEC's own words "(Kim) cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter." - this seems to clash with previous statements of this being a deal to allow her to "put this all behind her".
The most likely scenario is Kim sharing information on other projects that approached her, allowing the SEC to take note of which projects intended to spend a sizeable budget on celebrity endorsements. Once they have this, they can begin to see what those companies ended up doing, and if any celebs that were eventually hired properly disclosed their status as paid endorsers.
Author: Oliver Redding
Seattle Newsdesk /
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