Floyd Mayweather, Kim Kardashian Facing Lawsuit Over Promotion Of Crypto Token
Kim Kardashian and Floyd Mayweather Jr are among the defendants in a class-action lawsuit.
The lawsuit accuses the celebrities of misleading their social media followers about a cryptocurrency called EthereumMax, or EMAX. It claims they promoted crypto tokens to boost prices and make profit for themselves.
“The company’s executives, collaborating with several celebrity promoters … made false or misleading statements about EthereumMax through social media advertisements and other promotional activities,” the lawsuit stated.
The suit was filed by a New York resident who bought EMAX tokens and lost money. Figures reportedly show that the cryptocurrency crashed by 98% weeks after the celebrities endorsed it.
On June 14, 2021, in an Instagram post, Kardashian promoted EthereumMax to her then-250 million followers.
“Are you guys into crypto?” she wrote in the post. She wanted to share “what my friends just told me” about the EthereumMax tokens. She included the #AD hashtag to show the post was a paid advertisement, the lawsuit said.
She disclaimed that it was not financial advice.
Mayweather, meanwhile, promoted EthereumMax on his boxing trunks in his fight with YouTube star Logan Paul on June 6, 2021, which generated more than one million pay-per-view buys.
Former NBA star Paul Pierce was also named in the suit.
The lawsuit is proposed as a class-action suit, which means anyone who bought EMAX tokens from mid-May to late June 2021 can join in the suit.
The case seeks restitution and release profits by the defendants.