The lawsuit alleges that celebrities made false or misleading statements about EthereumMax to investors; company dispute allegation
The lawsuit alleges that EthereumMax is “a speculative digital token created by a mysterious group of cryptocurrency developers.” It added that celebrities asked their millions of social-media followers to buy the cryptocurrency, only to sell when the price went up.
Ethereummax denied the allegations. A spokesperson for the company said, “The misleading story surrounding the recent allegations is filled with misinformation.”
Ms Kardashian and representatives for Messrs Mayweather and Pierce did not immediately respond to requests for comment.
Mr. Mayweather promoted Ethereum Max in 2021 when he was in a boxing match with YouTube celebrity Logan Paul. Former NBA player and sports commentator Paul Pierce promoted Ethereummax on his Twitter account during an unrelated conflict with ESPN at the time.
Ms Kardashian promoted cryptocurrency on Instagram, where she has 278 million followers. A 2021 post by the reality TV star and entrepreneur asking his followers on the platform to join the “Ethereum Max community” drew criticism from the UK financial watchdog.
The head of the UK’s Financial Conduct Authority, Charles Randall, said in a speech in September that Ms Kardashian’s post “could be a financial hype with the largest audience reach in history.” She also criticized the reveal ad, saying Ms Kardashian did not need to tell followers that EthereumMAX was a month-old, speculative digital token.
“I cannot say whether this particular token is a scam,” Mr. Randall told the Cambridge International Symposium on Economic Crime, according to a Copy of his comments posted online, “But social media influencers are regularly paid by scammers to help pump and dump new tokens behind pure speculation. Some influencers promote coins that don’t exist at all.”
An EthereumMax representative said at the time that Ms Kardashian’s “post was only intended to raise awareness of the project and its usefulness.”
Write to Talal Ansari at [email protected]