Kim Kardashian is paying $1.26m penalty after facing legal trouble

Kim Kardashian has paid US regulators more than $1m to settle charges for failing to disclose that she was paid to promote a crypto asset in a post on her Instagram page.

The reality TV star, social media influencer and entrepreneur, who is estimated to be worth $1.8bn has agreed to pay the Securities and Exchange Commission (SEC) $1.26m to settle the charges.

She was paid $250,000 to post about crypto security tokens sold by EthereumMax on her Instagram account in June last year. Kardashian asked her then 220 million Instagram followers: “Are you guys into crypto????”

The post, which featured the hashtag “#ad”, included a link to the EthereumMax website, which gives users instructions about how to buy the tokens.

Kardashian’s failure to disclose the payment was a violation of federal securities laws, the SEC said.

“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 Gary Gensler, the chair of the SEC.