Kim Kardashian and Floyd Mayweather Jr. have been sued for allegedly defrauding EthereumMax cryptocurrency investors. According to reports, the plaintiffs sued the celebrities and unnamed businesses behind the tokens for inflating the value of the Ethereum clone so they could sell their piece of the Float for a profit. Anyone who purchased the token between May 14th and June 27th, 2021 is named as a defendant in the lawsuit.
The case says that EthereumMax executives and promoters used social media marketing and other promotional efforts to make fraudulent or deceptive assertions.
In order to inflate the price and sell their own sections of EMAX at a profit, Huegrich believes the executives disguised their control over the tokens, as well as what percentage was available for public trade during the May to June timeframe. According to the complaint, they inflated the price by attracting interest in the token through celebrity endorsements, including those of Kardashian, Mayweather Jr., and Pierce.
“In plain terms, EthereumMax’s entire business model relies on using constant marketing and promotional activities, often from trusted celebrities, to dupe potential investors into trusting the financial opportunities available with EMAX Tokens.”
Despite the fact that Huegerich has not revealed how much he spent on EMAX, he claims to have lost money as a result of Defendants’ actions. Kim Kardashian, Floyd Mayweather, and former Boston Celtics player Paul Pierce are among the individuals charged with unjust enrichment for assisting and abetting EMAX.
According to the complaint, Huegerich argues that their acts are in violation of California’s Unfair Competition Law, which forbids any unlawful, unfair, or fraudulent commercial conduct or practice, as well as the Consumers Legal Remedies Act.
Meanwhile, Kardashian shared an Instagram Story about EthereumMax, telling her followers that she learned about it through her pals and linking to the company’s website. According to the lawsuit, the token’s value plunged by 98 percent the day after Kardashian’s post. Furthermore, as evidenced by their wallet activity, the coin’s inventors allegedly sold out their holdings prior to the price decline.
For a long time, celebrities have been endorsing cryptocurrency tokens and even developing their own. This isn’t the first or last time they’ve been involved in a token controversy – in 2018, the Securities and Exchange Commission charged Mayweather with failing to disclose that he was paid $100,000 to promote Centra Tech’s 2017 initial coin offering.