Kim Kardashian and Floyd Mayweather have been sued by investors over 'misleading' cryptocurrency promotions
- Kim Kardashian,
Floyd Mayweather, and Paul Pierce are being sued by crypto investors.
lawsuitalleges the celebrities duped fans into buying EMAX tokens that plummeted 98% in value.
The class-action complaint was filed on behalf of all investors who purchased EthereumMax tokens between May 14 and June 27, 2021.
Kardashian first promoted the digital tokens in an Instagram ad she posted that June:
"Are you guys into crypto???? This is not financial advice but sharing what my friends just told me about the Ethereum Max token! A few minutes ago Ethereum Max burned 400 trillion tokens—literally 50% of their admin wallet, giving back to the entire e-max community. Swipe up to join the e-max community," the post read.
The advertisement reached approximately 1 in 5 US adults and 3 in 10 crypto owners, according to the data intelligence company Morning Consult.
Former NBA player Paul Pierce similarly promoted EMAX on Twitter on May 26, the lawsuit says. The same day, the cryptocurrency was publicized as the "exclusive Cryptocurrency accepted for online ticket purchasing" for the Floyd Mayweather vs. Logan Paul boxing match.
By mid-July, EMAX had crashed to a record-low of $0.000000017 per unit, according to the lawsuit. Meanwhile, the defendants "marketed the EMAX Tokens to investors so that they could sell their portion of the float for a profit," the claim alleges.
"In plain terms, EthereumMax's entire business model relies on using constant marketing and promotional activities, often from "trusted" celebrities, to dupe potential investors into trusting the financial opportunities available with EMAX Tokens," the lawsuit says.
Attempts to reach representatives for Kardashian, Pierce, and Mayweather for comment were unsuccessful.
- Adani Ports Q1 profits declines to ₹1,091 crore
- Unicorns and startups should prepare for a longer funding winter, says SoftBank's Masayoshi Son
- Lok Sabha passes Energy Conservation Bill to promote non-fossil fuels
- Indian government is reportedly planning on restricting Xiaomi, Realme, Vivo and Oppo from the budget smartphone segment
- Less than 50% of children able to catch up with age-appropriate learning, claims survey