Kim Kardashian has been fined more than £1m for promoting a cryptocurrency on social media without disclosing she was paid to do so.
The reality TV star settled a case with the US Securities and Exchange Commission (SEC) after touting tokens sold by EthereumMax last summer on Instagram.
In a post to her then 225m 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.
Fine: Reality TV star Kim Kardashian (pictured) settled a case with the US Securities and Exchange Commission after touting tokens sold by Ethereum Max on Instagram
SEC chairman Gary Gensler said: ‘This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t 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 disclose to the public when and how much they are paid to promote investing in securities.
‘Investors are entitled to know whether the publicity 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 £1.1million to settle the case with the SEC.
She also agreed to not promote any crypto assets for three years. Her lawyer Michael Rhodes said: ‘She wanted to get this matter behind her.’
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