The US Securities and Exchange Commission reported that reality TV star Kim Kardashian agreed to pay $1.26 million for promoting a cryptocurrency on her official Instagram page, without disclosing that she had received a sum of money in exchange.
The agency accused Kim of promoting the EMAX cryptocurrency that is traded on the EthereumMax platform, without noting that she received $250,000 from the platform for doing the promotion.
The penalty includes a $1 million fine plus $260,000, which is the amount Kardashian received with interest.
In return, Kim 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.
According to Forbes, Kardashian’s fortune is $1.8 billion. It is also reported that the value of the currency promoted by Kim, the ex-wife of international rapper Kanye West, fell a lot after the recent incident, which led to people losing their money invested in this field.