Kim Kardashian has been slapped with a US$1.26 million (AUD$1.94 million) fantastic after failing to reveal she was paid to spruik a cryptocurrency to her 330 million followers on Instagram.
The fact television star was paid $US250,000 (AUD$386,000) to advertise Ethereum Max tokens on her Instagram account in June final 12 months.
Kardashian’s failure to reveal the cost has landed her with the million-dollar fantastic and a three-year ban from selling cryptocurrencies.
The US Securities and Alternate Fee (SEC) mentioned Kardashian’s failure to disclose she was paid for the publish violated federal securities legal guidelines.
“This case is a reminder that, when celebrities or influencers endorse funding alternatives, together with crypto asset securities, it doesn’t imply that these funding merchandise are proper for all buyers,” Gary Gensler, the chair of the SEC, mentioned.
“We encourage buyers to contemplate an funding’s potential dangers and alternatives in gentle of their very own monetary purpose.”
Kardashian has neither confirmed or denied the SEC’s findings, nevertheless, her lawyer mentioned she was “happy to have resolved this matter”.
“Kardashian absolutely cooperated with the SEC from the very starting and he or she stays keen to do no matter she will to help the SEC on this matter,” her lawyer mentioned in an announcement.
“She wished to get this matter behind her to keep away from a protracted dispute. The settlement she reached with the SEC permits her to do this in order that she will transfer ahead along with her many various enterprise pursuits.”
In November 2017 the SEC warned celebrities that US guidelines require they disclose when they’re being paid to advertise crypto tokens.
Since then a string of different high-profile names, together with actor Steven Seagal, music producer DJ Khaled and boxer Floyd Mayweather Jr. have been fined for breaking that rule.