Kim Kardashian, Floyd Mayweather Sued for Inappropriately Promoting Cryptocurrency

Kim Kardashian, reality TV star and Floyd Mayweather Jr., boxing legend, are being sued in a class action lawsuit for promoting Ethereummax and the EMAX cryptocurrency token. According to the lawsuit, the celebrities’ “improper promotional activities” generated the trading volume necessary for all defendants to transfer their EMAX tokens onto unsuspecting investor.

Kim Kardashian and Floyd Mayweather Jr. Sued over Crypto Promotion

Kim Kardashian and Floyd Mayweather Jr. were sued for promoting a cryptocurrency token. Ryan Huegerich, a New York resident, filed the class action lawsuit on Jan. 7. It alleges that Mayweather and Kardashian misled investors by promoting Ethereummax and EMAX.

Others include Ethereummax’s co-founders and creators Steve Gentile, Giovanni Perone, Justin French, the project’s developer and consultant, and Paul Pierce, its promoter.

Huegerich purchased EMAX tokens, and lost money. Anyone who purchased EMAX tokens between May 14, 2021 and June 27, 2021 is covered by the class action. According to the lawsuit

Promoting activities by the promoters led to the trading volume necessary for the defendants and their EMAX tokens to be transferred onto unsuspecting investors.

The lawsuit also claims that the class members and plaintiff “were purchasing the
EMAX Tokens inappropriately promoted, defendants were able, and did, to sell their EMAX tokens… for substantial profits.”

In June 2021, Kardashian promoted Ethereummax to her 250 million Instagram followers. Kardashian’s Instagram post promoting Ethereummax contained the #AD hashtag at the bottom right of the image. This was to indicate that it was a paid advert and that Kardashian is “routinely paid between $300,000.00 and $1 million for most promotional posts.”

Mayweather promoted Ethereummax in many ways, including by wearing his boxing trunks in a highly viewed fight against Youtube star Logan Paul in June and offering incentives to fans to buy tickets online with EMAX tokens.

Mayweather was charged with failing to disclose fraudulent crypto investment payments by the U.S Securities and Exchange Commission (SEC). Mayweather was released from these charges in November 2018. According to the lawsuit, “The settlement was dated November 29, 2018, which means that this agreement was clearly violated in connection to defendant Mayweather’s Ethereummax promotion.”

After its May launch, the price of EMAX shot up 1,370%. The lawsuit describes how EMAX fell to an all-time low of 98% on July 15. It has not been able recover from that drop. The defendants are required to pay restitution and to disgorge profits.

Following the announcement of the lawsuit, the Ethereummax team released a statement. They stated that the deceptive narrative surrounding the latest allegations was rife with misinformation about Ethereummax.

We reject the allegations and we look forward to finding out the truth.

In a warning against crypto-scams, Charles Randell, chairman of the U.K.’s Financial Conduct Authority and Payment Systems Regulator (PSR), singled out Kim Kardashian last September.