Kim Kardashian has agreed to pay $1.26 million to the Securities and Exchange Commission for “unlawfully” promoting a cryptocurrency on her Instagram.
It’s not illegal to promote products or assets on Instagram – as long as stars inform their followers that they’re being paid for promotion.
The Federal Trade Commission (FTC) previously warned celebrities and influencers to stop endorsing products on social media without first adding a promo tag.
Kim, who is studying to be a lawyer, agreed to pay the huge fine without admitting or denying anything.
Kim is among several public figures who promoted a cryptocurrency called EthereumMax, or EMAX, on Instagram.
Semi-retired boxer Floyd Mayweather and former NBA star Paul Pierce also promoted the cryptocurrency on IG. They were named in a class-action lawsuit in January.
The lawsuit alleged that Mayweather offered signed boxing gloves, ringside tickets and discounts to anyone who purchased tickets to his fights online using EMAX Tokens.
