Reality television star Kim Kardashian agreed to pay a $1.26 million (€1.29 million) settlement to the US Securities and Exchange Commission (SEC) over fraud charges related to the cryptocurrency company EthereumMax.
The SEC had accused Kardashian of touting the company's EMAX tokens, a crypto security asset, on her Instagram account without the legally required disclaimer that she was paid to do so.
Kardashian was reportedly paid $250,000 for the post. As part of her settlement with the SEC, she is not allowed to promote crypto assets for at least three years.
"The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion,'' Gurbir Grewal, director of the SEC's division of enforcement, said in a statement.
Kardashian's lawyer said she had cooperated fully with the SEC's investigation.
Crypto under scrutiny
Following a year of criminal scandals and crashing markets, cryptocurrencies have increasingly come under government scruntiny in the United States. A new bipartisan proposal in Congress would ensure that high-profile cryptocurrencies like Bitcoin and Ether are subject to the authority of regulators.
Kardashian joins other celebrities such as boxer Floyd Mayweather, rap star DJ Khaled, actor Steven Seagal and rapper T.I. in running afoul of US authorities when it comes to promoting cryptocurrencies.
