Kim Kardashian, Floyd Mayweather Sued for Inappropriately Promoting Cryptocurrency Token – Featured Bitcoin News

Reality TV star Kim Kardashian and boxing legend Floyd Mayweather Jr are facing a class action lawsuit over promoting Ethereum and crypto token EMAX. The lawsuit alleges that “celebrity inappropriate promotional activities generated the necessary trading volume for all defendants to dump their EMAX tokens on unsuspecting investors.”

File a lawsuit against Kim Kardashian and Floyd Mayweather Jr over cryptocurrency promotion

A lawsuit has been filed against Kim Kardashian and Floyd Mayweather Jr. for promoting cryptocurrency. The class action lawsuit, filed on January 7 by New York resident Ryan Hoegrich, alleges that Kardashian and Mayweather misled investors in their promotion of Ethereum and the Emacs crypto token.

Other accused include Ethereummax, its founders and co-creators Steve Gentile and Giovanni Perone, project advisor and developer Justin French, and promoter Paul Pierce.

Huegerich bought EMAX tokens and lost money. The class action includes anyone who purchased EMAX tokens from May 14, 2021 to June 27, 2021. According to the suit:

The defendants’ improper promotional activities resulted in the necessary trading volume for all defendants to offload their EMAX tokens to unsuspecting investors.

In addition, the lawsuit alleges that while the plaintiff and class members were “purchasing
inappropriately promoted EMAX tokens, [the] The defendants were able to sell their EMAX tokens and did so to generate significant profits.”

Kardashian promoted Ethereummax in June 2021 Instagram post to her 250 million followers. The lawsuit noted that the reality TV star’s Instagram post contained the hashtag #AD “tucked into the far right of the post” to show that it was a paid ad, adding that Kardashian “routinely gets between $300,000 and $1 million for most promotions.”

Kim Kardashian’s Instagram post about Ethereummax and the EMAX token.

Mayweather promoted Ethereummax in a number of ways, including on his boxing trunks during a widely seen fight with Youtube star Logan Paul in June, and offering incentives for fans to buy tickets online with EMAX tokens.

In November 2018, Mayweather settled charges with the US Securities and Exchange Commission (SEC) for not disclosing payments it received for fraudulent crypto investments. “The settlement was dated November 29, 2018, which means that this Agreement was flagrantly breached in connection with the defendant Mayweather’s Ethereummax promotion,” the lawsuit says.

EMAX price has risen 1.370% after its launch in May. However, on July 15, it hit an all-time low, “a 98% drop that it hasn’t been able to recover from,” the lawsuit described. The case seeks to compensate the defendants for the profits and dispose of them.

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

We oppose the allegations and look forward to the emergence of the truth.

In September last year, the UK’s Financial Conduct Authority (FCA) chief and payment systems regulator (PSR), Charles Randell, singled out Kim Kardashian in a warning about crypto-related scams.

What do you think of the lawsuit against Kim Kardashian and Floyd Mayweather Jr.? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found bitcoin in 2011 and has been a missionary ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

photo credits: Shutterstock, Pixabay, Wikicommons

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