“The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion,” Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, said in a statement.
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“Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information,” Grewal continued.
How much was Kardashian actually paid for the ad? The billionaire received $250,000, all of which she’ll repay with an additional $10,000 interest. The $1 million on top of that is presumably meant to dissuade Kardashian from doing this ever again after her three-year hiatus.