Kardashian faces million-dollar fine for illegal crypto-asset promotion

Armenian-descent American celebrity Kim Kardashian’s crypto misadventure has landed her in hot water with federal regulators.

The reality TV superstar and influencer have settled the US Securities and Exchange Commission (SEC) charges that she failed to disclose a payment she received for touting a crypto asset on her Instagram feed, the agency announced on October 3, according to CNBC.

“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, chairman of the SEC, said in a news release.

Gensler said the case also serves as a reminder that the law requires celebrities and others to disclose when and how much they are paid to promote investing in securities.

Kardashian, who is reportedly worth $1.8 billion, agreed to pay $1.26 million to settle the charges over promotion on Meta’s Instagram for EthereumMax’s crypto asset, the SEC said. She will also cooperate with an ongoing investigation, and has agreed to not promote crypto securities for three years, the regulator added.