Kim Kardashian fined $2.2 million over unlawful cryptocurrency scheme

Kim Kardashian is to pay $1.26 million ($2.2m NZD) for unlawfully selling cryptocurrency.

In what has been called a "pump and dump" scheme by critics, the reality TV star has paid a huge fine after promoting a cryptocurrency asset on Instagram.

The 41-year-old reality megastar is reportedly facing a settlement agreement with the Securities and Exchange Commission following charges that she was promoting a digital currency EMAX tokens on Instagram and had encouraged her 331 million followers to follow a link and sign up without disclosing that she was being paid for to make the post in the first place.

Gurbir Grewal, director of the SEC's division of enforcement, said in a statement: "The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion."

According to reports, The Kardashians star - who was previously married to rap star Kanye West and has North, nine, Saint six, Chicago, four, and three-year-old Psalm with him - has to pay a $1 million fee for the alleged crime, and will also have to pay an additional $260,000 to cover the fee she had taken for advertising the cryptocurrency.

The SKIMS founder is reportedly "pleased" to have settled the matter with the agency and is now able to "move forward" with her business ventures.

A lawyer for Kim told CBS News: "Ms. Kardashian is pleased to have resolved this matter with the SEC. 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."

- Bang! Showbiz