Kim Kardashian, Floyd Mayweather and More Sued for Alleged Crypto Scam
The celebrities promoted the controversial cryptocurrency EthereumMax on social media.
Kim Kardashian and Floyd Mayweather Jr. are being sued alongside several others for endorsing cryptocurrency EthereumMax and sharing posts of the coin to millions of followers on their social media platforms.
New York resident Ryan Huegrich filed a complaint about EthereumMax tokens purchased between May 14, 2021, and June 27, 2021, with a reported loss of earnings after the coin’s wild price swings. According to CNBC, the coin has lost about 97% of its value since June, a financial blow to eager fans who initially invested in the token.
The Wall Street Journal reports that the defendants are accused of making “false or misleading statements to investors about EthereumMax through social media advertisements and other promotional activities.” Kardashian endorsed EthereumMax in September 2021 to her 250 million followers in a sponsored post, encouraging fans to join the “EthereumMax Community.” The class-action lawsuit alleges that EthereumMax is a “pump-and-dump” scheme created by a “mysterious group of cryptocurrency developers.”
Mayweather promoted the cryptocurrency alongside his highly-anticipated fight with YouTube creator Logan Paul, accepting EthereumMax as legal tender for tickets starting at $49.99 USD. In 2018, Mayweather faced a similar legal battle after being fined by the Securities and Exchange Commission (SEC) for promoting over $200,000 USD worth of ICOs via Instagram.
In a statement to The Wall Street Journal, a company spokesperson for EthereumMax denied the allegations. “The deceptive narrative associated with the recent allegations is riddled with misinformation,”
In other news, Steph Curry invests in LinksDAO after the release of a surprise NTF drop.
