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- Kim Kardashian and Floyd Mayweather sued for promoting the Crypto Token by EtherMax. The lawsuit against the public figures was filed on Jan 7 by a New York resident who faced the losses.
- Kim Kadarshian promoted the crypto token in a post in June 2021, most likely “the financial promotion with the single biggest audience reach in history”, while Floyd Mayweather promoted the EthereumMax token on his boxing trunks in a match in the same month.
- However, the company EthereumMax has denied the allegations from the head and said that the narrative regarding the recent allegation is filled with “misinformation”.
Kim Kardashian, Famous TV Personality, and Boxing Superstar Floyd Mayweather Jr. have a lawsuit filed against them alleging the celebrities of misleading investors through the promotion of a crypto token.
The lawsuit was filed against the celebrities on Jan 7 in Los Angeles court, according to which the celebrities allegedly promoted the token by EMAX or EthereumMax to increase its price, however, without accounting for the losses faced by their followers and investors.
The lawsuit also claimed that the company’s executive is making false statements regarding EthereumMax through several promotion activities, including social media advertisements.
According to the lawsuit, in June 2021, Kardashian, who had a following of 250 million on Instagram, uploaded the promotional post captioned as “Are you guys into crypto?” The caption also included the disclaimer “this is not financial advice”; however, Kim said she wanted to share “what my friends just told me” about the EthereumMax tokens. She also added the hashtag #AD confirming that the post was a paid advertisement.
The lawsuit stated the mention of the hashtag #ad proposing that she is being paid for promoting the Ethereum Max token. Although the exact amount paid to Kim is not known, Kardashian usually charges between the range of $500,000 to $1 million per promotional post.
Fast Forward to seven months later, EthereumMax’s dropped by 97% in its value, and the celebrities are now under investigation for promoting the crypto token.
Meanwhile, among many instances, Mayweather was seen promoting the EthereumMax on his boxing trunks during a match with Logan Paul, Youtube Star, in June.
Mayweather was even booed off stage for promoting the EthereumMax at a large conference in Miami. The lawsuit also mentions that Mayweather hasn’t yet revealed his payment for the promotion of the token.
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The lawsuit also included the name of the company EthereumMax.EthereumMax, or EMAX, in its statement, saying that the recent allegations in the deceptive narrative are filled with misinformation about the EthereumMax project. The company denied the allegation and said they await the time when the truth comes out.
The lawsuit is filed by a New York resident, Ryan Huegerich, as a class-action suit against anyone who purchased EMAX tokens between May 14, 2021, and June 17, 2021, and lost money.
The appellant quest restoration of the money lost and disgorgement of profits.
Experts strictly advise not to fall for such promotions as the celebrities promoting cryptocurrencies get paid hefty amounts of money for a single post and are often unaware of the pump and dump schemes.
Jake Paul, Loren Gray, Jamie Foxx, Charli and Dixie D’Amelio are among the celebrities who promoted cryptocurrencies on social media.
In general, investing in any cryptocurrency without proper research is not advised. At the same time, the celebrities must investigate on their part when endorsing the cryptocurrencies to prevent being accountable for misleading claims.
