Kim Kardashian has been fined more than $1million after being accused of failing to disclose a payment she received for promoting crypto currency on social media.
The reality TV star, 41, has paid $1.26 million in penalties, disgorgement and interest as a result of charges brought by the US Securities and Exchange Commission (SEC).
It announced today (October 3) charges against Kim for "touting on social media a crypto asset security offered and sold by EthereumMax without disclosing the payment she received for the promotion."
The Commission said she has agreed to settle the charges, pay $1.26 million (£1million) and co-operate with its ongoing investigation - though she didn't admit or deny the findings.
The SEC said its order finds that Kim failed to disclose that she was paid $250,000 to publish a post on Instagram about EMAX tokens, the crypto asset security being offered by EthereumMax.
It said the post - understood to have been made in June last year - contained a link to its website, which provided instructions for potential investors to purchase EMAX tokens.
The Commission said it had found that Kim violated the anti-touting provision of the federal securities laws.
It said: "Without admitting or denying the SEC's findings, she agreed to pay the aforementioned $1.26 million, including approximately $260,000 in disgorgement, which represents her promotional payment, plus prejudgment interest, and a $1,000,000 penalty. She also agreed to not promote any crypto asset securities for three years".
SEC Chair Gary Gensler said the case is a reminder that when celebs endorse investment opportunities, it doesn't mean that those investment products are right for all investors.
Investors are instead encouraged to consider an investment’s potential risks and opportunities in light of their own financial goals.
He added: "Ms. 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."
Gurbir S. Grewal, Director of the SEC's Division of Enforcement, said: "The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion.
"Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information."
Kim's lawyer has said in a statement to the Mirror: "Ms. Kardashian is pleased to have resolved this matter with the SEC. Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter.
"She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits."
The Mirror approached Kim's rep for comment.
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