Why Kim Kardashian Is In Trouble With The SEC
When Kim Kardashian makes headlines, it's typically because she released a new product, like a line of bathroom accessories that cost a jaw-dropping amount, or after the reality star makes a controversial red carpet appearance. Fans may also get inundated by stories about who the mom of four is dating or what she's posting to social media. But Kardashian is trending for another unexpected reason today. The SKIMS mogul is in trouble with the Securities and Exchange Commission and is now set to pay a hefty sum for allegedly not following regulations about promoting cryptocurrency online (via Bloomberg).
According to the SEC, Kardashian was paid a quarter of a million bucks to tout EMAX tokens to her 331 million Instagram followers, a fact she did not disclose at the time. Given this omission, the star is settling with the regulatory body for $1 million — as well as paying back her take from the promotion, according to NPR. Further, the TV staple is prohibited from posting about crypto for three years.
Clearly, SEC chair Gary Gensler is looking to make an example out of the mega-influencer, saying in a statement about the situation, "Ms. Kardashian's case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities."
Through a spokesperson, Kardashian also spoke out about the cringey matter.
Kim and her critics speak out
Via her attorney, Patrick Gibbs, Kim Kardashian is offering insight into how she feels about settling the matter with the SEC. According to the Cooley law firm partner, his famous client "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." He added she is looking to move forward with her multitude of other "business pursuits" (via Bloomberg).
While the undergarments guru may be looking to move on, Twitter is having its say about the settlement. One of the prevailing sentiments on the social media site was that for someone who is following a career as a lawyer, the oversight seemed all-the-more glaring.
Many other Twitter users were struck by the seemingly-paltry amount of money the star, who is worth well over $1 billion, was being asked to pay, with one person joking, "That's her shoe budget for the month" (via Forbes).