Kim Kardashian and Floyd Mayweather Jr. sued for alleged crypto pump and dump

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Kim Kardashian is one of the celebrities named in a cryptocurrency lawsuit.

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Kim Kardashian, Floyd Mayweather Jr., and Paul Pierce promoted a crypto token called EthereumMax last May. A group that invested in the token have now filed a lawsuit against the celebrities and the coin’s creators, claiming they were victims of a pump and dump system.

Draft class action lawsuit (see below) filed on Friday by investors who bought EthereumMax between May 14, 2021 and June 27, 2021, alleges they were victims of a scam, according to a report from Finbold Monday. Kardashian, Pierce, and Mayweather were named in the lawsuit for promoting the token with the creators of EthereumMax.

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Kardashian and Pierce made the token public on their social media accounts while EthereumMax was used to purchase tickets for Mayweather’s fight against Logan Paul on June 6. The lawsuit, filed in California U.S. District Court, alleges celebrities were paid to promote the token and references a September Morning Consult poll that showed 19% of Kardashian’s social media subscribers purchased EthereumMax after she posted about it.

EthereumMax started trading on May 16, 2021 at $ 0.00000006, but its value then rose more than 1,000% on May 29, according to CoinMarketCap. It lost value the following week and continued to drop throughout June to a level below its starting value.

Crypto pump and dump scams have become commonplace over the past year as crypto token creation has become easier, celebrity influence has grown, and the number of people looking to get rich quick with it. crypto has gone up. While a token like EthereumMax is only worth a tiny fraction of a dime, these ploys involve hundreds of billions of coins being created, so any large take-over can result in millions of dollars being created, which is the pump. . Then the coin’s creators and promoters sell their billions of tokens, causing the price to plummet and leaving investors with worthless assets. While this scam is illegal for securities such as stocks, there is currently no legal ramifications for crypto pumps and dumps.

The group of investors who filed the complaint are seeking financial compensation for the damage resulting from the alleged scheme.

Kardashian, Mayweather and Pierce did not immediately respond to a request for comment.

The complaint:

By jonathan_skillings, Cryptocurrency Lawsuit

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