There is a price to be paid when you sell investment opportunities to your fans without telling them you are making money.
The celebrity was paid $250,000 to promote a coin, but didn't tell the SEC.
The product was promoted as a good investment on Ms.Kardashian's social media pages.
Ms.Kardashian became famous through her family's long running reality TV show. She promotes the products she uses and wears.
A number of celebrities started endorsingcryptocurrencies in commercials. The S.E.C. has warned many times that investors shouldn't buy an investment just because it has a celebrity behind it. Over the years, regulators have gone after celebrities and others for not revealing that they have been paid for promoting an investment product.
Athletes and celebrities joined forces with SPACs during the H1N1 epidemic. The S.E.C. issued an alert to warn investors about blank check company stock offerings.
Gary Gensler, the S.E.C. chair, said in a statement that the case serves as a reminder to celebrities and others that the law requires them to reveal when and how much they are paid to promote investing in securities.
Ms.Kardashian was pleased to have resolved this matter with the S.E.C., and that the agreement allowed her to move forward with her business interests, according to a statement from her lawyer.
Ms.Kardashian told her followers that this was not financial advice but sharing what her friends had told her.
The S.E.C. regulates investment products.
The S.E.C. said she was paid by a third party.
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