The reality TV star, Kim Kardashian and the boxing legend, Floyd Mayweather, are among the targets of a recent lawsuit. Filed in a Los Angeles federal court on January 7, the suit alleges that the duo and other celebrities misled investors by promoting a digital currency known as EthereumMax (EMAX).
Misrepresentation of Facts to Pump EMAX Token Price
The plaintiff, according to court documents, represents investors who invested in “the Ethereum Max scheme” from May 14 through June 27, 2021. It stated that they incurred losses as a result of the promotional activities of Kardashian, Mayweather, and others.
The filings read that the celebrities misled the investors by misrepresenting material facts with respect to the crypto asset by creating the impression that buying the token would them generate profit.
According to a statement in the lawsuit:
In furtherance of this scheme, Defendants touted the prospects of the Company and the ability for investors to make significant returns due to the favorable “tokenomics” of the EMAX Tokens. In truth, Defendants marketed the EMAX Tokens to investors so that they could sell their portion of the Float for a profit.
Celebrities Were Paid to Promote Ethereum Max Token
The filing further emphasized that the celebrities promoted EthereumMax via their social media accounts by collaborating with executives of the company. It added that the motive was to boost the value of the EMAX token and lure as many investors as possible to purchase the asset. It also stated that the defendants accomplished their intended objectives.
Other celebrity defendants in the case are Steve Gentile, Giovanni Perone, Justin French, and Paul Pierce. In a June 2021 Instagram post promoting EthereumMax, Kimberly Kardashian wrote to her 250 million followers:
“Are you guys into crypto?” she wrote, adding that her friends told her about Ethereum Max.
However, she made it clear that the post was a paid advert and also stated that it was not financial advice.
Floyd Mayweather wore customized EthereumMax shorts during his fights. Most notably, he had such promo clothing on during the highly-advertized “Billing Rights” exhibition match against Logan Paul in June 2021.
Featured Image Courtesy of CNA
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 25% off trading fees.