Kim Kardashian has agreed to pay a fine of US$1.26mln for advertising EthereumMax on her Instagram page.
The American socialite had received US$250,000 for advertising the currency without disclosing that she had been paid to do so, according to the US Securities and Exchange Commission (SEC).
A statement from the SEC said Kardashian had agreed to pay the fine without admitting or denying the SEC’s findings that she had violated anti-touting rules.
Kardashian published a post on her Instagram account about EMAX tokens, the crypto security assets offered by EthereumMax, which also contained a link to the website and instructions on how to purchase assets.
An investigation is still ongoing, said the SEC, with Kardashian agreeing not to promote any crypto assets for three years.
"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," said SEC chair Gary Gensler.
"We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals."