Reality television star Kim Kardashian, has reportedly agreed to a US$1.2 million settlement with the Securities and Exchange Commission (SEC), for failing to properly disclose that she was paid to promote a cryptocurrency.

In a statement on Monday, October 3, the SEC noted that Kardashian failed to disclose that her promotion of cryptocurrency- EMAX, which has reportedly been surrounded by controversy, was a paid endorsement.

It was said that the socialite was paid US$250,000 for her Instagram promotion.

As for her personal case regarding investigations such as misleading crypto promotions, both parties have agreed to settle the case, with the SKIMS boss agreeing to pay $1.26 million in penalties, disgorgement, and interest.

Also, as part of the settlement her agreement to cooperate with the SEC as investigations continue.

 It’s understood that Kardashian did not admit or deny the charges against her.

 The breakdown of the fine included approximately US $260,000 in disgorgement and prejudgment interest, in addition to the actual US $1,000,000 penalty.

She has also been gagged from promoting any crypto projects for the next three years, as part of the penalty conditions. A feat that the SEC asserts should serve as an example.

“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 ” SEC Chair Gary Gensler said.

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

Other noted celebrities including producer DJ Khaled and boxer Floyd Mayweather, have reportedly also been charged in previous years for promoting crypto security tokens without full disclosure.