
Audio By Carbonatix
Kim Kardashian has agreed to pay a $1.26m (£1.12m) fine for advertising EthereumMax on her Instagram page.
The US Securities and Exchange Commission said the reality TV star had received $250,000 for advertising the cryptocurrency, without disclosing she had been paid to do so.
She also agreed not to promote crypto asset securities for three years.
Her lawyer told BBC News: "Ms Kardashian is pleased to have resolved this matter with the SEC."
The lawyer said: "Kardashian fully cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter.
"She wanted to get this matter behind her to avoid a protracted dispute.
"The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits."
'Misleadingly promote'
Ms Kardashian, boxer Floyd Mayweather Jr, basketball player Paul Pierce and EthereumMax's creators were sued by investors in January.
The legal action alleged they had collaborated to "misleadingly promote and sell" the cryptocurrency in a "pump and dump" scheme designed to inflate the price before selling to investors.
EthereumMax disputed the allegations at the time.
In spite of its name, EthereumMax has no legal or business connection with the Ethereum cryptocurrency.
'Highly speculative'
Gary Gensler, who chairs the SEC, called the case a "reminder" celebrity endorsement did not necessarily make a product worth investing in.
"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," he said.
Later, in a YouTube video about crypto investment, he added: "Celebrity endorsements... don't mean that an investment product is right for you or even, frankly, that it's legitimate.
"Even if a celebrity endorsement is genuine, each investment has its own risk and opportunities.
"When it comes to crypto, remember many of these are highly speculative assets.
"You may be wondering if it's right for you or even if it might be a scam."
Latest Stories
-
Keep the money in Ghana – Gov’t enforces local cargo insurance
1 hour -
US Army veteran charged with leaking classified information to journalist
2 hours -
Dr. Dre joins Forbes billionaires list as second-richest hip-hop artist with $1 billion fortune
2 hours -
Trump administration cannot nix legal status of 5,000 Ethiopians, US judge rules
2 hours -
Libya announces new oil and gas discoveries with three major energy companies
2 hours -
Oil rises as investors remain wary US-Iran ceasefire will open supply flow
2 hours -
Police arrest suspect over church threat video
4 hours -
Eight appear in court as police intensify crackdown on illicit drugs in Tamale
4 hours -
Motorist remanded in custody for hitting four-year-old girl
5 hours -
Mobile money vendor robbed at Ziope
5 hours -
Benin’s Finance Minister Wadagni seeks his own mandate in election
5 hours -
GNFS retrieves body of unidentified man from Asylum Down drain
5 hours -
CAF’s Motsepe to visit both Senegal and Morocco amid AFCON fallout
5 hours -
Edmond Boateng takes up secretary role at Honorary Consular Corps of Ghana
5 hours -
Armed men kill 20 and abduct others in northwestern Nigeria villages
6 hours