Kim Kardashian, Floyd Mayweather sued for roles in alleged ‘pump and dump’ crypto scam

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Celebrities including boxer Floyd Mayweather Jr., Kim Kardashian and former NBA All-Star Paul Pierce are being prosecuted for their role in an alleged “pump and dump” cryptocurrency scam.

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According to Class action complaint to the Central District of California, listed celebrities as well as the company EthereumMax are being accused of making misleading statements regarding the digital tokens that the company offers.

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“Company executives, collaborating with a number of celebrity promoters, (a) made false or misleading statements to investors about EthereumMAX through social media advertisements and other promotional activities and (b) sold a significant percentage of EthereumMAX and eMax tokens. available for public trade during the relevant period,” the complaint reads.

EthereumMax is a company that offers ERC-20 tokens On Ethereum ETHUSD,
+5.12%
network, according to its website. According to CoinMarketCap, the current price of the EthereumMax token is $0.00000001961 as of Tuesday morning.

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Mayweather promoting Ethereum Max during his exhibition boxing match against Logan Paul in 2021. Mayweather says he received a total of $30 million for all the ads on his trunk during that fight.

Kardashian touted Ethereummax on Instagram FB to her over 250 million followers last June,
+1.92%,
And Pierce posted on his verified Twitter TWTR about how much money he made from EthereumMax “last month”,
+1.73%
Last May account.

“The unreasonable promotional activities of the promoter defendants generated
Trading volume required for all defendants to offload their EMAX tokens
Uncertain investors. when plaintiffs and class members were buying goods
Improperly Promoted EMAX Tokens, Defendants were, and still do, were able to sell
their EMAX tokens during the relevant period to make a substantial profit,” the complaint reads.

A spokesperson for EthereumMax told Businesshala that the allegations were part of a “misleading narrative” about the company, claiming that the people who worked on the project last year are different from those currently involved. Representatives for Kardashian, Mayweather and Pierce did not respond to Marketwatch’s request for comment on this story.

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“In my years of representing athletes and celebrities, I consistently advise them that, beyond the legal language in any contract, they should always ensure that they actually have an affinity for that product or service. Which they’re supporting,” Darren Hetner, professor of sports law at the University of Florida, told Businesshala in an email regarding the complaint. “It is rarely beneficial for someone to enter into an unauthenticated relationship with a brand, especially if that person has amassed significant wealth throughout their career. This is why such a position regarding EthereumMax is so capricious. “

“Convinced that the claim in the complaint is true, Floyd Mayweather, Kim Kardashian, and Paul Pierce engaged in this occasion for exactly one payday and nothing further. The problem with this is that their fans and supporters often Do not consider the propaganda efforts genuine and rely on their statements, probably to their detriment,” Hetner continued.

At the time of Kardashian’s post, the head of the United Kingdom’s Financial Conduct Authority (FCA), touting EthereumMax Charles Randall Warns EthereumMax Was “A Speculative Digital Token” Made a month ago by unknown developers.” He went on the accusers To promote the “quick money illusion” related to cryptocurrencies.

Cryptocurrency markets can be extremely volatile and it is important to make informed financial decisions when dealing with crypto. Crypto prices are trending lower on Monday and Bitcoin BTCUSD,
+2.44%
For the first time since September, the price has dropped below the key price for some time at $40,000.

Bitcoin remains bearish. “It is difficult to see when this turns around,” say analysts.

“Convincing people to spend money on cryptocurrency projects seems especially easy, for athletes and celebrities to do a thorough due diligence on these platforms before associating themselves with companies and whatever else.” They can, makes them more important than just being seen as money-hungry and associated with pump-and-dump scams,” Hetner said.

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