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- 1 Famous celebrities were accused of illegal endorsements of the crypto tokens.
- 2 At first, the case was dismissed but under a new ruling, they were all charged with penalties.
- 3 When asked for defence statement they all were silenced and were guilty.
Celebrities like Kim Kardashian and Floyd Mayweather tried to promote crypto tokens without revealing that they are paid to do so. Judge Fitzgerald found this a punishable offence.
Celebrities Illegally Endorsing Crypto Tokens
Accused celebrities Kim Kardashian and Floyd Mayweather returned to hook for A- class action case. The case accuses both celebrities of illegal and improper promotion of the Ethereum Max (EMAX). EMAX is a defunct crypto token.
The lawsuit was filed against the celebrities in January 2022. The case was filed in charge of promoting a “pump and dump” scheme. But the case was dismissed in December 2022 in California by a federal judge.
But U.S. district judge Michael Fitzgerald disagreed with the decision of the federal judge. Under the new ruling on June 6, Michael Fitzgerald considered the famous TV actor Kardashian and boxing champion Mayweather guilty. They were accused of unfair competition in promoting the EMAX token in 2021.
The judge now alleges the celebrities Kim Kardashian, Floyd Mayweather and NBA star Paul Pierce that took advantage of an opportunity. They earned profits from their fan’s expenses which did not have any legitimate business plan. The judge has seen a fit and ordered to amend the 162-page complaint.
Judge Fitzgerald says that the court is no longer on the same case, it is dealing with entirely new complaints, new accused and many other new crimes. Judge Fitzgerald considers the act of promoting crypto tokens without revealing that you are paid to do so as a crime. He considered it an unfair practice and alleges the celebrities of this crime.
He also added that when accused the celebrities did not produce any argument to support them. They were silent and proposed nothing in their defence. The judge had asked the A-class lawyers of Scott+Scott to explain. They are asked to present all the evidence of how the celebrity promotion affected the prices of crypto tokens.
Reuters mentioned in its report that the Sean Masson of Scott+Scott has clearly claimed that the endorsements by celebrities were the main element on which the EMAX business model was based.
Celebrities endorsed crypto tokens in various ways, Kim K plugged the EMAX token in a post on Instagram in June 2021. Mayweather wore boxing trunks in the same month which had the EMAX logo on them. He wore them during a match against Logan Paul, who is a youtube star.
Ethereum MAX is a “Culture Token” that makes a path for the gap that exists between the community tokens and the well-known foundational coins of crypto. It has no relation with crypto, states the whitepaper.
Kim K was charged for unlawfully selling the crypto coins and hampering their security by SEC in October 2022. She accepted that she tried to be illegally involved in EMAX promotions and paid $1.26 million.
Class action punished those investors who bought tokens even after celebrity shills. The penalty was issued, but the amount in the penalty is not specified.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
