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Kim Kardashian and Floyd Mayweather Jr. are being sued for promoting the alleged crypto scam regarding the EthereumMax token. The promotion of the said altcoin by the reality star and the boxing legend to their millions of social media followers misled investors.
The lawsuit that was filed on 7 January 2022 in Los Angeles federal court, asserts the celebrities trumpeted tokens sold by EthereumMax (EMAX) only to get its price to rise and to earn themselves a profit “at the expense of their followers and investors.”
The lawsuit stated,
“The company’s executives, collaborating with several celebrity promoters … made false or misleading statements about EthereumMax through social media advertisements and other promotional activities.”
Floyd Mayweather and Kim Kardashian served
A class-action lawsuit was filed last Friday in the U.S District Court for the Central District of California accuses EthereumMax (naming the company specifically) and its celebrity promoters of working together to artificially hike the price of the token.
The reality star, Kim Kardashian, created a flutter on her Instagram post, in 2021, promoting the EMAX token. She wrote, “Are you guys into crypto???? This is not a financial advice but sharing what my friends just told me about the Ethereum Max token!” She mentioned a hashtag #ad in the post, implying that she was paid to promote it.
In the meantime, the boxing legend, Floyd Mayweather Jr. promoted the token in his boxing match with YouTube star Logan Paul. EMAX was accepted as a mode of payment for the tickets to the event; the lawsuit claims that this move had boosted the trading volume of the asset. Mayweather had also promoted the token at a huge Bitcoin conference in Miami, but whether he was paid to do so wasn’t disclosed by the boxing legend, according to the lawsuit.
According to the lawsuit,
“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.”
Celebrity endorsements can be as glamorous as it seems, but it is always a safer way to play the game by having done one’s own research over investments.