Kim Kardashian has agreed to pay $1.26 million after posting about a crypto asset security on social media without disclosing she had been paid for the promotion.

An investigation by the Securities and Exchange Commission (SEC) found that the social media personality failed to disclose that she had been paid $250.000 on her Instagram account about EMAX tokens, the crypto asset security offered by EthereumMAX.

In a statement, the commission said Kardashian had neither admitted or denied the charges and had agreed to pay $1.26 million. This includes approximately $260,000 in disgorgement, which represents her promotional payment, plus prejudgment interest, and a $1,000,000 penalty. Kardashian also agreed to not promote any crypto asset securities for three years.

Commenting on the news, SEC Chair Gary Gensler 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.”

Gensler added: "Ms. Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities."

Gensler has also published a video on Twitter warning investors not to make investment decisions based solely on the recommendation of a celebrity or social media influencer.

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