Kim Kardashian has agreed to pay $1.26mn to settle charges with the US securities regulator for promoting a cryptocurrency without revealing that she was paid to do so.
The US Securities and Exchange Commission said on Monday the reality TV star did not disclose a $250,000 payment she received to post about crypto security tokens sold by EthereumMax on her Instagram account, which has 331mn followers.
Kardashian last year asked her then 225mn followers: “Are you guys into crypto????” in an Instagram post that drew attention to EthereumMax, a new coin at the time.
Gary Gensler, SEC chair, 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”.
Kardashian — who neither admitted nor denied the SEC’s findings — violated the anti-touting provisions in US securities laws, the agency said.
A lawyer representing Kardashian did not immediately respond to requests for comment.