According to the SEC, the reality TV star failed to disclose that she was paid to promote EthereumMax in a post last year.
Kim Kardashian has agreed to pay $1.26 million (£1.12 million) to settle charges brought by the US Securities and Exchange Commission about an Instagram post.
According to the SEC, the reality TV personality failed to declare that she was paid $250,000 (£220,000) to promote a cryptocurrency asset on her feed.
The commission stated that the post promoted EMAX tokens, the asset security offered by EthereumMax, and that she was paid by EthereumMax through an intermediary, but did not specify the amount.
Kardashian wrote to her 331 million followers in June of last year:
“ARE YOU INTERESTED IN CRYPTO?
THIS IS NOT FINANCIAL ADVICE, BUT I WOULD LIKE TO SHARE WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.”
Her Instagram post included a link to the EthereumMax website, where interested investors could purchase EMAX tokens.
According to US law, people who promote a particular stock or cryptocurrency investment must disclose not only that they are being paid, but also the amount, source, and type of such payments, according to SEC head Gary Gensler.
