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Reality star Kim Kardashian and boxing legend Floyd Mayweather Jr. face a class-action lawsuit for promoting the Ethereummax and EMAX cryptocurrency tokens. The lawsuit states that the celebrities “inappropriately promoted the volume that was necessary for all defendants to sell their EMAX tokens to unsuspecting investors.”
Kim Kardashian and Floyd Mayweather Jr. Sue Crypto Promotion
Kim Kardashian and Floyd Mayweather Jr. indicted for promoting cryptocurrency tokens. New York resident Ryan Huegerich filed a class-action lawsuit on Jan. 7, alleging that Kardashian and Mayweather misled investors when they promoted the Ethereummax and EMAX crypto tokens.
Other defendants include Ethereummax, its co-founders and creators Steve Gentile and Giovanni Perone, the project’s consultant and developer Justin French, and promoter Paul Pierce.
Huegerich bought EMAX tokens and lost money. The class action covers anyone who purchased EMAX tokens between May 14, 2021 and June 27, 2021. According to the lawsuit:
The inappropriate promotional activities of the sponsor defendants generated the trading volume necessary for all defendants to resell their EMAX tokens to unsuspecting investors.
Additionally, the lawsuit alleges that while plaintiffs and class members “are purchasing
Improper promotion of EMAX tokens, [the] The defendants could and did sell their EMAX tokens…for a substantial profit. “
Kardashian promotion Ethereummax posted to her 250 million followers on Instagram in June 2021. The lawsuit states that the reality star’s Instagram post contained the hashtag #AD “hidden in the far bottom right corner of the post” to indicate that it was a paid ad, adding that Kardashian “generally gets paid for most promotions” $300,000 to $1 million in remuneration. Posts.”
Mayweather promoted Ethereummax in a number of ways, including wearing boxer pants during a well-publicized boxing match with YouTube star Logan Paul in June, and offering fans incentives to use EMAX tokens to buy tickets online.
Mayweather, November 2018 settle down The U.S. Securities and Exchange Commission (SEC) charged him with failing to disclose payments he received for fraudulent crypto investments. “The settlement agreement, dated November 29, 2018, means that the agreement was flagrantly violated during defendant Mayweather’s Ethereummax promotion,” the lawsuit said.
The price of EMAX surged 1,370% after its launch in May. However, on July 15, it hit an all-time low, “a 98% drop that cannot be recovered,” the lawsuit said. The case requires the defendants to return and recover profits.
The Ethereummax team released a statement following news of the lawsuit. “The deceptive narrative associated with the recent allegations is riddled with misinformation about the Ethereummax project,” they said, adding:
We dispute these allegations and look forward to the truth being revealed.
In September last year, Charles Randell, chairman of the UK Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR), said: single out Kim Kardashian warns about cryptocurrency scams.
What do you think of the lawsuits against Kim Kardashian and Floyd Mayweather Jr.? Let us know in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons
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