Kim Kardashian and Floyd Mayweather File Motion to Dismiss Crypto Promotion Lawsuit

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Kim Kardashian, Floyd Mayweather and other celebrities are seeking to convince a judge to reject another revised bid to hold them accountable for allegedly promoting EthereumMax (EMAX) without proper disclosure.

The celebrities asked a California federal judge to dismiss a second amended lawsuit from EthereumMax investors filed in December 2022. According to the defendants, the renewed allegations advance the “same basic theory” that the court had previously dismissed.

Looks like Floyd is rocking with the $eMax waveeee #EMAX #Ethereummax #Ethereum pic.twitter.com/TB9wNLwCcb

— Breezy Gambinø (@BreezyGambino1) June 4, 2021

The investor class action claims the EthereumMax team worked with the celebrities to sell EMAX tokens to investors in what they describe as a “pump and dump” scheme.

However, the defendant’s motion to dismiss the renewed complaint argues that the theory regarding celebrities advertising EMAX tokens to artificially pump its price has already been dismissed by the court since the tokens have no value outside of this. that the market is willing to pay. . They wrote:

“The Court further dismissed the earlier complaint in its entirety due to fundamental flaws. Adding new claims, defendants and over 100 pages of largely irrelevant allegations does not fix the flaws.

Additionally, the motion suggests that the investors’ new theory is that they held on to EMAX due to celebrity misrepresentations. However, the motion to dismiss argues that the investors “did not suffer any harm by simply keeping the tokens.”

Related: Celebrities Who Got Burned Endorsing Crypto and Those Who Got Away

Meanwhile, Kardashian has already been fined because of EthereumMax promotions on social media. On October 3, 2022, the American socialite reached a $1.26 million settlement with the United States Securities and Exchange Commission (SEC) after she failed to disclose that she had received a payment of $250,000 to promote the crypto project.

The SEC recently issued a warning to celebrities promoting crypto. On Feb. 17, the SEC reminded stars that they are required by law to disclose how much they are paid and from whom when promoting securities investments.

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