Celebrity icon Kim Kardashian agreed to pay US regulators over $1 million to settle charges related to "unlawfully touting" a cryptocurrency, authorities announced on Monday.
The Securities and Exchange Commission (SEC) charged Kardashian with failing to disclose that she received $250,000 to promote EthereumMax's EMAX cryptocurrency on her personal Instagram page. The post from June 2021 contained a link to the EthereumMax website, which offered would-be investors instructions on how to purchase the crypto asset.
"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," SEC Chair Gary Gensler said in a statement. "We encourage investors to consider an investment's potential risks and opportunities in light of their own financial goals."
"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," Gensler added.
In addition to accepting the $1.26 million financial penalty, Kardashian is being prohibited from advertising any cryptocurrencies for three years and will cooperate with the commission's ongoing investigation, the SEC said.
Kardashian is one of several celebrities who publicly promoted cryptocurrencies before the crypto market nosedived earlier this year.
Kardashian was sued in January alongside boxer Floyd Mayweather Jr., NBA star Paul Pierce and EthereumMax co-founder Steve Gentile. The suit alleges that the defendants worked to "misleadingly promote and sell" the EMAX cryptocurrency.
