Kim Kardashian | Floyd Mayweather

Kim Kardashian & Floyd Mayweather have been accused of defrauding crypto token + Details

Kim Kardashian, Floyd Mayweather Sued for Inappropriately Promoting Cryptocurrency Token

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Kim Kardashian is one of the O.J. Simpson‘s daughters, head trial lawyers, Robert Kardashian. Kim Kardashian first hit the scene as one of Paris Hilton‘s party pals. Kim Kardashian, born October 21, 1980, became known outside the gossip circuit when a pornographic video of her and then-boyfriend, rapper Ray J, appeared on the internet in 2006. Kim Kardashian is currently studying to be a lawyer and hopes to take the bar in 2022.

Reality TV star Kim Kardashian and boxing legend Floyd Mayweather Jr. are facing a class-action lawsuit over their promotion of Ethereummax 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 Over Crypto Promotion

 

Floyd Mayweather

Kim Kardashian and Floyd Mayweather Jr. have been sued over their promotion of a cryptocurrency token. The class action lawsuit, filed by New York resident Ryan Huegerich on Jan. 7, alleges that Kardashian and Mayweather misled investors in their promotion of Ethereummax and the EMAX crypto 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 bought EMAX tokens and lost money. The class action covers anyone who bought EMAX tokens from May 14, 2021, to June 27, 2021. According to the lawsuit:

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

inappropriately promoted EMAX Tokens, [the] defendants were able to, and did, sell their EMAX tokens … for substantial profits.”

Kardashian promoted Ethereummax in a June 2021 post on Instagram to her 250 million 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 in several ways, including on his boxing trunks during a widely viewed fight with Youtube star Logan Paul in June, and providing incentives for fans to purchase online tickets with EMAX tokens.

 

Kim Kardashian

In November 2018, Mayweather settled charges with the U.S. Securities and Exchange Commission (SEC) for failing to disclose payments he received for fraudulent crypto investments. “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.

The price of EMAX quickly surged 1,370% after its launch in May. 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. The case seeks restitution and disgorgement of profits by the defendants.

The Ethereummax team issued a statement following the news of the lawsuit. “The deceptive narrative associated with the recent allegations is riddled with misinformation about the Ethereummax project,” they said, adding:

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.

The lawsuit, filed Jan. 7 in Los Angeles federal court, claims the celebrities touted tokens sold by EthereumMax, or EMAX, in order to boost its price and make themselves a profit "at the expense of their followers and investors."

"The company's executives, collaborating with several celebrity promoters ... made false or misleading statements about EthereumMax through social media advertisements and other promotional activities," the lawsuit stated.

According to the lawsuit, Kardashian promoted EthereumMax in a June 2021 post on Instagram, when she had 250 million followers.

"Are you guys into crypto?" she wrote in the post, followed by the disclaimer "this is not financial advice", but that she wanted to share "what my friends just told me" about the EthereumMax tokens. She included the #AD hashtag to show the post was a paid advertisement, the lawsuit said.

Mayweather promoted EthereumMax on his boxing trunks during a widely viewed fight with YouTube star Logan Paul in June, among other times.

Representatives for Kardashian and Mayweather did not immediately respond to requests for comment.

EthereumMax, the company, was also named in the lawsuit.

"The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project," EthereumMax said in a statement. "We dispute the allegations and look forward to the truth coming out."

The lawsuit, filed by a New York resident who bought EMAX tokens and lost money, is proposed as a class-action suit for anyone who bought EMAX tokens from mid-May to late June 2021.

The case seeks restitution and disgorgement of profits by the defendants.

 

Source:

Reuters

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