Kim Kardashian has been fined over £1m for promoting cryptocurrency on social media, without revealing that she was paid for doing so.
The reality TV star settled a case with the US Securities and Exchange Commission (SEC) last summer after talking about a token sold by EthereumMAX on Instagram.
In a post to her 225 million followers, she asked ‘Are you guys into crypto’? and provided a link to the EthereumMax website. But she failed to disclose that she was paid £220,000 to do so – landing her in hot water with regulators.
The Fine: Reality TV star Kim Kardashian (pictured) settled a case with the US Securities and Exchange Commission after touting a token sold by Ethereum Max on Instagram
SEC Chairman Gary Gensler said: ‘This case is a reminder that, while celebrities or influencers endorse investment opportunities including crypto asset securities, it does not mean that those investment products are right for all investors. .
‘Miss Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to publicly disclose when and how much they are paid to promote investments in securities.
Investors are entitled to know whether the promotion of a security is unbiased, and Miss Kardashian failed to disclose this information.’
Kardashian did not admit or deny any wrongdoing, but agreed to pay £1.1 million to settle the matter with the SEC.
She also agreed not to promote any crypto assets for three years. Her lawyer Michael Rhodes said: ‘She wanted to take the matter behind her.’