American reality TV star Kim Kardashian has agreed to pay a $1.26 million fine after illegally pushing a cryptocurrency on Instagram without disclosing that she was paid to do so, Securities and Exchange reported on Monday. Exchange Commission.
The agency accused Kardashian, who has 331 million Instagram followers – making her one of the ten most-followed people on the global social network – of not disclosing that she was paid $250,000 to publish information about EMAX tokens, the security of crypto assets being offered. by Ethereum Max.
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.
“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 suitable for all investors,” the chairman said. the SEC, Gary Gensler, in the press release.
“We encourage investors to consider the potential risks and opportunities of an investment in light of their own financial objectives.”
The reality star-turned-entrepreneur Kardashian rose to fame with the American reality show “Keeping Up With the Kardashians,” which followed the lives of her family members in Los Angeles.
The 41-year-old has steadily built her business empire in recent years — most visibly with her clothing and beauty brands — and has a net worth of $1.8 billion, according to Forbes.
She announced last month that she was heading into a new business arena with the launch of private equity firm SKKY Partners.
Other celebrities who have been arrested by US authorities in the past for illegally promoting cryptocurrencies include boxer Floyd Mayweather, rap star DJ Khaled, actor Steven Seagal and rapper TI.