Kim Kardashian fined R23-million after promoting crypto ad on Instagram

Realist star Kim Kardashian has agreed to settle a hefty $1.26-million (R22m) penalty for failing to disclose that she was paid to promote a crypto asset security on her Instagram page.

The crypto asset security was sold by EthereumMax. Kim, who has 331-million followers on Instagram, was charged by the Securities and Exchange Commission (SEC).

She was allegedly paid $250, 000 (R4.4-million) by the company to promote its EMAX tokens, but did not tell her follower that the post was an ad. Social media creators in the US are required by law to disclose all posts that are sponsored by a company. There are also extra laws when promoting investment products. 

According to Variety, while Kim did not deny or admit the SEC's findings, she has agreed to pay the fine and not promote any crypto asset securities for the next three years. 

Lawyers for the SKIMS mogul told E! News that she fully cooperated with the SEC and is "pleased to have resolved the matter". 

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While the fine is a hefty one, it is small change for Kim. The 41-year-old reportedly has a net worth of $1.8 billion. She earns up to $1-million per post for promoting products on social media, but makes most of her wealth from her many businesses. 

"A large portion of her wealth comes from her stakes in KKW Beauty, her cosmetics and fragrance company, and Skims, her shapewear business," according to Forbes. 

" I think my talent is marketing and the business behind selling products and knowing what the customer wants and making it feel attainable, but also a bit unattainable at the same time. I wouldn’t say that’s a talent. I think it’s a bit of magic and business savvy. Maybe it is talent, I don’t know," Kim told Interview magazine in September. 

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Main image credit: Instagram/@kimkardashian