US reality star Kim Kardashian has agreed to pay a $1.26 million fine after illegally posting a cryptocurrency on Instagram without disclosing that she was paid for it, the Securities and Exchange Commission announced on Monday known.
The agency accused Kardashian, who has 331 million followers on Instagram — making her one of the top 10 most followed people on the global social network — of failing to disclose that she was paid $250,000 to trade via EMAX token, the crypto -Asset security, posting is provided by EthereumMax.
The fine includes a penalty of $1 million plus $260,000, which is the amount Kardashian paid plus interest, the SEC said in a statement. She also agreed not to promote crypto-asset securities for three years.
“This case is a reminder that celebrity or influencer endorsement of investment opportunities, including crypto-asset securities, does not mean those investment products are appropriate for all investors,” SEC Chairman Gary Gensler said in the statement.
“We encourage investors to weigh the potential risks and rewards of an investment in light of their own financial goals.”
Entrepreneur-turned-reality-star Kardashian rose to fame with the US reality show Keeping Up With the Kardashians, which followed the lives of her family members in Los Angeles.
The 41-year-old has steadily built her business empire in recent years — most visibly with her clothing and beauty brands — and has a net worth of $1.8 billion, according to Forbes.
She announced last month that she would be venturing into a new business field by founding a private equity firm, SKKY Partners.
Other celebrities have been caught by US authorities in the past for illegally promoting cryptocurrencies, including boxer Floyd Mayweather, rap star DJ Khaled, actor Steven Seagal and rapper TI