Kim Kardashian has agreed to pay $1.26m (£1.12m) to settle charges brought by the US Securities and Exchange Commission for a post on her Instagram account.
The reality TV star has not disclosed that she was paid $250,000 (£220,000) for promoting a cryptocurrency asset on her feed, the SEC said.
The commission said the publication touted EMAX tokens, the asset security offered by EthereumMax, and was paid for by EthereumMax, through an intermediary, but did not disclose the payment.
In June of last year, kardashians posted to his 331 million followers, writing: “ARE YOU INTO THE CRYPTO???
His Instagram post contained a link to the EthereumMax website, which provided instructions for potential investors to buy EMAX tokens.
Under US law, people who tout a certain stock or crypto security must disclose not only that they are being paid, but also the amount, source and nature of those payments, the SEC Chairman said. , Gary Gensler.
He also said the Kardashian affair was “a reminder that when celebrities or influencers endorse investment opportunities, including crypto asset securities, this does not mean that these investment products are suitable for all investors”.
Kardashian’s attorneys released a statement saying she was happy to have the case resolved.
“Kardashian has cooperated fully with the SEC from the outset and remains willing to do whatever it can to assist the SEC in this matter,” the statement said.
“She wanted to put this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so she can move forward with her many different business pursuits.”
Not disclosing payment for promoting titles is a violation of federal law. The $1.26m (£1.12m) she paid includes her promotion fee, interest and the $1m penalty.
The reality TV star isn’t the only celebrity to have been charged by the SEC for crypto promotions.
Boxer Floyd Mayweather Jr and music producer DJ Khaled were both indicted in 2018 for allegedly not disclosing payments they received for promoting cryptocurrencies.
Neither Mayweather nor DJ Khaled admitted or denied the charges but agreed to pay $767,500 (£682,700) in fines and penalties.
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