WASHINGTON: US reality star Kim Kardashian has agreed to pay a $1.26 million fine after unlawfully pushing a cryptocurrency on Instagram without revealing that she was paid to do so, the Securities and Exchange Commission announced Monday.
The agency accused Kardashian, who has 331 million followers on Instagram — making her one of the top ten most followed people on the global social network — of failing to disclose that she was paid $250,000 to post about EMAX tokens, the crypto asset security being offered by EthereumMax.
The fine includes a penalty of $1 million plus $260,000, representing the amount Kardashian paid plus interest, the SEC said in a statement. She also agreed not to promote any crypto asset securities for three years.
“Are you guys into crypto????” the post, published in June of 2021, read.
“This is not financial advice but sharing what my friends just told me about the Ethereum Max token!”
SEC Chair Gary Gensler said the case was “a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securit
