Kim Kardashian and Floyd Mayweather sued for roles in pump and dump crypto scam

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Celebrities including boxer Floyd Mayweather Jr., Kim Kardashian and former NBA All-Star Paul Pierce are being sued for their role in an alleged cryptocurrency pump and dump scam.

According to the California Central District class action lawsuit, the listed celebrities along with the EthereumMax company are accused of making misleading statements about the digital tokens offered by the company.

Company executives, in conjunction with several celebrity promoters, (a) have made false or misleading representations to investors about EthereumMax through social media ads and other promotional activity and (b) disguised their control over EthereumMax and a significant percentage of the available EMAX tokens. for public exchanges during the relevant period, the complaint reads.

EthereumMax is a company that offers ERC-20 tokens on the ethereum ETHUSD network, + 5.16%, according to its website. The current price of an EthereumMax token on Tuesday morning is 0.0000001961, according to CoinMarketCap.

Mayweather promoted EthereumMax on his trunks during his exhibition boxing match against Logan Paul in 2021. Mayweather says he received a total of $ 30 million for all advertising on his trunks during this fight. .

Kardashian touted EthereumMax last June to his 250 million FB Instagram followers, + 1.14%, and Pierce posted how much money he made with EthereumMax last month on his verified TWTR Twitter account, +1, 96% last May.

The inappropriate promotional activities of the Promoting Defendants generated the volume of transactions necessary for all Defendants to offload their EMAX tokens on unsuspecting investors. While the plaintiff and the class members purchased the inappropriately promoted EMAX tokens, the defendants were able and sold their EMAX tokens during the relevant period for substantial profit, the complaint states.

A spokesperson for EthereumMax told MarketWatch that the allegations were part of a misleading account about the company and claimed that the people who worked on the project last year were different from those who are currently involved. Representatives for Kardashian, Mayweather and Pierce did not respond to MarketWatchs’ request for comment on this story.

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During my years of representing athletes and celebrities, I constantly advise them that beyond the legal language of any contract, they should always be sure that they really have an affinity for the product or service that they are. they argue, Darren Heitner, professor of sports law at the University of Florida, told MarketWatch in an email referring to the complaint. It is seldom beneficial for someone to enter into an inauthentic relationship with a brand, especially if that person has accumulated significant wealth throughout their career. This is what makes a situation like the one with EthereumMax so mind-boggling.

Assuming the claims in the complaint are true, Floyd Mayweather, Kim Kardashian, and Paul Pierce indulged in this opportunity for precisely one payday and nothing more. The problem with this is that their fans and supporters often believe their promotional efforts are genuine and rely on their statements, perhaps to their detriment, Heitner continued.

At the time of publication of Kardashians touting EthereumMax, UK Financial Conduct Authority (FCA) chief Charles Randell warned that EthereumMax was a speculative digital token created a month earlier by unknown developers. He then accused influencers of fueling cryptocurrency illusions of quick riches.

Cryptocurrency markets can be extremely volatile and it is important to make informed financial decisions when it comes to crypto. Crypto prices tend to move lower on Monday and bitcoin BTCUSD prices, + 2.11%, briefly fell below the key $ 40,000 price for the first time since September.

Continue Reading: Bitcoin’s Bearish Sentiment Persists. It’s hard to see when this turns around, analysts say.

It seems particularly easy to convince people to spend money on cryptocurrency projects, making it more important for athletes and celebrities to conduct due diligence on these platforms before partnering with companies and do all they can not to be seen as just being. greedy for money and connected to a pump and dump scam, Heitner said.

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