Kim Kardashian to pay huge $1.26 million fine over controversial cryptocurrency post
4 October 2022, 10:34
Kim has been caught out over failing to disclose that she was being paid to advertise a crypto company.
Kim Kardashian has been fined $1.26m (£1.12m) over failing to disclose an advertisement for a crypto company on her Instagram feed.
The 41-year-old reality star was paid $250,000 (£220,000) for promoting a cryptocurrency company on her Instagram stories, but failed to disclose that she was being paid to post it.
In June last year, Kim posted to her 330 million followers the financial post which contained a link to the crypto website, and posted instructions on how to purchase, without telling her followers that she was being paid to do so.
She posted on her stories: "ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN."
The Instagram post also included a link to the website for the crypto company, called EthereumMax, which provided instructions for potential customers how to purchase the currency.
Now, Kim has agreed to pay the million dollar fine as she failed to disclose how much and that she was getting paid to promote the company. She has also pledged to not promote anything to do with crypto for the next two years.
Under US Law, influencers who promote crypto must disclose that they are getting paid to promote crypto, and they also must share how much they are getting paid too.
Lawyers speaking for the reality star have released a statement saying that she was pleased to have the matter resolved.
"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," the statement read.
"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."
A million dollars to Kim shouldn't hit the bank too hard, as she has recently just bought another house for a whopping $70 million dollars.
The SKIMS founder is reportedly worth nearly $2 billion dollars thanks to her success as a reality star and entrepreneur in many ventures.