Kim Kardashian, Floyd Mayweather sued for alleged involvement in crypto scam

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Kim Kardashian, Floyd Mayweather and Paul Pierce are among those sued for their promotion of the EthereumMax cryptocurrency, according to the Hollywood Reporter.

The class action lawsuit, filed in federal court in California on Friday, accuses the stars of colluding with EMAX co-founders Steve Gentile and Giovanni Perone as part of an organized pump-and-dump program, “pushing investors buy these losing investments at an inflated price. prices.”

Alleging violations of state laws on consumer protection, common law aiding and abetting and unjust enrichment, the lawsuit essentially accuses celebrities of promoting worthless tokens.

“Company executives, together with several celebrity promoters, (a) have made false or misleading statements to investors about EthereumMax through social media ads and other promotional activity and (b ) have disguised their control over EthereumMax and a significant percentage of EMAX tokens that have been available for public commerce during the relevant period, ”the complaint read.

In June, Kardashian promoted EthereumMax to her 250 million Instagram followers. “Do you like crypto? ? Kim wrote. “This is not financial advice, but a sharing of what my friends just told me about the Ethereum Max token! A few minutes ago, Ethereum Max burned 400 trillion tokens, literally 50% of its portfolio of administrators, giving back to the entire E-Max community.

Shortly after Kim’s post, the price of the token shot up over 1370%. The price has since fallen almost 98%.

“This meteoric rise did not last long, and EthereumMax began to deflate immediately after the message from the accused Kardashian,” the complaint read. “On July 15, the price of the EMAX token hit an all-time low: $ 0.000000000017 per unit, a drop of 98% from which it could not recover. “

A month before Kim’s post, Pierce promoted tokens amid a dispute with his former employer ESPN. Meanwhile, Floyd wore trunks with an advertisement for EthereumMax during his exhibition boxing match against Logan Paul in June.

“Inappropriate promotional activities by the promoter defendants generated the volume of transactions necessary for all defendants to offload their EMAX tokens on unsuspecting investors,” the complaint states. “While the Plaintiff and the Class Members purchased the inappropriately promoted EMAX tokens, the Defendants were able to sell their EMAX tokens during the relevant period and did so for substantial profit.”

Kardashian, Mayweather and Pierce have yet to comment on the allegations.

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