Kim Kardashian, Floyd Mayweather, and Paul Place, are defendants in a lawsuit for allegedly promoting a cryptocurrency called EthereumMax.
A class action suit filed in the U.S. District Court for the Central District of California on January 7 claimed that executives of the cryptocurrency company EthereumMax, in collaboration with Kardashian, Mayweather Jr and Pierce, sought to enrich themselves by making “false and misleading statements” about the company’s digital token, EMAX, through social media advertisements and other promotional activities that reached hundreds of millions of potential investors.
According to Finbold, plaintiffs have sued the celebrities and the still-unidentified entities behind the tokens for causing the value of the Ethereum knockoff to soar so “they could sell their portion of the Float for a profit.”
The lawsuit lists anybody who invested in the token between May 14th and June 27th, 2021 as a defendant.
According to Gizmodo, the claimants are accusing the defendants of perpetrating a “pump and dump” scheme, in which investors sell off their shares to make a lot of money after orchestrating a rise in its value.
The lawsuit also states that the coin rose 632 percent in value after Mayweather and Pierce promoted it. Pierce had tweeted about it while Mayweather wore shorts that had the EthereumMax URL during his fight with Logan Paul.
Kardashian posted about EthereumMax on Instagram Stories, telling followers that she heard about it from her friends and linking to its website.
According to Morning Consult, 19 percent of the survey respondents who said they heard about Kardashian’s post invested in EthereumMax as a result.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.