Kim Kardashian will pay $1.26 million to settle a fine for not disclosing cryptocurrency gig

Kim Kardashian has been fined $1.26 million for an alleged cryptocurrency Instagram scam as a US newsreader slammed the Kardashians as ‘a force for evil.’

US reality star Kim Kardashian has agreed to pay a $US1.26 million ($A1.94mn) fine after unlawfully promoting a cryptocurrency on Instagram without revealing that she was paid to do so, the Securities and Exchange Commission announced on Monday, local time.

The agency accused Kardashian, who has 331 million followers on Instagram, of failing to disclose that she was paid $US250,000 ($A386,000) to post about EMAX tokens, the crypto asset security being offered by EthereumMax.

Ethereum is a digital ledger that underpins tens of billions of dollars worth of cryptocurrencies, digital tokens (NFTs), games and apps. Picture: Stefani Reynolds / AFP

In addition to the fine, Kardashian has agreed not to promote any crypto asset securities for three years.

“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 SEC Chair Gary Gensler in the statement.

“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”

Megyn Kelly Picture: Getty Images

Kim Kardashian's Instagram

It comes as American journalist and media personality Megyn Kelly slammed the Kardashian family as “a force for evil” who have flaunted “unrivalled vanity” that has fuelled a societal “focus on one’s self” and “ego” in the pursuit of “clicks” and “likes.”

“They didn’t do it by themselves,” Kelly said on the Friday podcast of The Megyn KellyShow. “But more than any other, they’ve had a terrible effect in that lane.”

“And I do blame them,” she said. “I do.”

Kim Kardashian has been fined for not disclosing she was paid to promote cryptocurrency on her Instagram account. Picture: Frazer Harrison/Getty Images for ABA

Reality-star-turned entrepreneur Kardashian came to fame with the US reality show Keeping Up With the Kardashians, which followed the daily life of her family members in Los Angeles.

The 41-year-old has steadily built her business empire in recent years - most visibly with her apparel and beauty brands - and has a net worth of $US1.8 billion ($A2.78bn), according to Forbes.

She announced last month that she was branching into a new business arena with the launch of a private equity firm SKKY Partners.

Other celebrities have been nabbed in the past by US authorities for illegally promoting cryptocurrencies, including boxer Floyd Mayweather, rap star DJ Khaled, actor Steven Seagal and rapper T.I.

Originally published as Kim Kardashian will pay $1.26 million to settle a fine for not disclosing cryptocurrency gig