Kim Kardashian fined $1.26 million for promoting cryptocurrency

Kim Kardashian was fined US$1.26 million (AUD$1.94 million) for failing to disclose that she had received payment to promote a cryptocurrency to her 330 million Instagram followers.

In June of last year, the reality television actress received a payment of US$250,000 (AUD$386,000) to advertise Ethereum Max tokens on her Instagram account.

Kardashian has been hit with a $1 million fine and a three-year ban from marketing cryptocurrencies as a result of her failure to report the payment.

According to the US Securities and Exchange Commission (SEC), Kardashian broke federal securities laws by failing to disclose that she received payment for the post.

“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,” Gary Gensler, the chair of the SEC, said.

“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goal.”

Kardashian has neither confirmed or denied the SEC’s findings, however, her lawyer said she was “pleased to have resolved this matter”.

“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,” her lawyer said in a statement.

“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.”

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