Kim Kardashian (Reality TV Star) and Floyd Mayweather Jr. (Boxing Legend) are currently facing a class-action suit over the promotion of Ethereummax token and the EMAX cryptocurrency token. The celebrities’ “improper promotional activities generated the trading volume needed for all the defendants to offload their EMAX tokens onto unsuspecting investors,” the lawsuit alleges.
Kim Kardashian and Floyd Mayweather Jr. Sued Crypto Promotion
Kim Kardashian and Floyd Mayweather Jr. were sued for promoting a crypto token. Ryan Huegerich (New York) filed the lawsuit on January 7th. It claims that Mayweather, Kardashian and Mayweather deceived investors when they promoted Ethereummax or the EMAX cryptocurrency token.
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 purchased EMAX tokens, and lost his money. Anybody who purchased EMAX tokens in the period May 14, 2021 to June 27, 2021 will be covered under this class action. According to the suit:
The promoter defendants’ improper promotional activities generated the trading volume needed for all the defendants to offload their EMAX tokens onto unsuspecting investors.
In addition, the lawsuit claims that while the plaintiff and class members “were buying the
EMAX Tokens were inappropriately promoted [the] defendants were able to, and did, sell their EMAX tokens … for substantial profits.”
In June 2021, Kardashian posted an Instagram post promoting Ethereummax to her 250,000,000 followers. The lawsuit noted that the reality TV star’s Instagram post contains the #AD hashtag “tucked in the far bottom right of the post” to show that it was a paid advertisement, adding that Kardashian “routinely gets paid between $300,000 and $1 million for most promotional posts.”
Mayweather promoted Ethereummax several times, such as on his boxing gear during a well-viewed fight with Youtube star Logan Paul, in June. Also, he offered fans incentives to buy tickets online using EMAX tokens.
Mayweather settled with the U.S Securities and Exchange Commission for not disclosing payments that he had received for his fraudulent investments in crypto. “The settlement was dated November 29, 2018, meaning that this agreement was blatantly violated in connection with defendant Mayweather’s Ethereummax promotion,” the lawsuit claims.
After its May launch, the price of EMAX shot up 1,370%. However, on July 15, it hit an all-time low, “a 98% drop from which it has not been able to recover,” the lawsuit describes. This case is seeking restitution from the defendants and disgorgement for profits.
Following the announcement of the lawsuit, the Ethereummax team released a statement. “The deceptive narrative associated with the recent allegations is riddled with misinformation about the Ethereummax project,” they said, adding:
We reject the claims and are looking forward to hearing the truth.
In September last year, the chairman of the U.K.’s Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR), Charles Randell, singled out Kim Kardashian in a warning about crypto scams.
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