American star Kim Kardashian agreed to pay $1.26 million for promoting cryptocurrency on her Instagram account, without disclosing that she had received a sum of money in exchange, the US Securities and Exchange Commission said Monday.
The authority accused the reality TV star, networking sites, and businesswoman of promoting the EMAX cryptocurrency that is being traded on the EthereumMax platform, without noting that she received $250,000 from the platform in return for this task.
The penalty includes a $1 million fine plus the $260,000 Kardashian received with interest.
The ex-wife of rapper Kanye West, who has agreed to cooperate with the SEC, has pledged not to promote any crypto assets for a period of three years.
“This case is a reminder that celebrities or social media stars promoting investment opportunities, including crypto assets, do not mean that these investment products bear benefits for all investors,” US regulator Gary Gensler said in a statement.
“We encourage investors to consider the potential risks and opportunities of any investment in light of their financial objectives,” he added.
Kardashian, whose Instagram account is followed by 331 million users, has a fortune of $1.8 billion, according to Forbes.