Kim Kardashian and Floyd Mayweather Jr. sued for allegedly making false statements about the crypto EthereumMax

Celebrities including boxer Floyd Mayweather Jr., Kim Kardashian and former NBA All-Star Paul Pierce have been sued for their roles in an alleged cryptocurrency scam.

According to a class action complaint from the Central District of California, the listed celebrities as well as EthereumMax are accused of making misleading statements about the digital tokens offered by the company.

“The company’s executives, in conjunction with several well-known promoters, (a) made false or misleading statements to investors about EthereumMax through social media advertisements and other promotional activities and (b) disguised their control of EthereumMax and a significant proportion of the EMAX tokens that were available for trading. year during the relevant period,” the complaint reads.

EthereumMax is a company that offers ERC-20 tokens on ETHUSD,
+ 5.17%
network, according to its website. The current price of the EthereumMax token as of Tuesday morning is $0.00000001961, according to CoinMarketCap.

Mayweather promoted EthereumMax on stumps during an exhibition boxing match against Logan Paul in 2021. Mayweather says he earned a total of $30 million for all advertising on stumps during that fight.

Kardashian promoted EthereumMax last June to more than 250 million followers on Instagram FB,
+ 1.16%And
And Pierce posted about how much EthereumMax has been making “in the past month” on verified Twitter TWTR,
+ 1.30%
account last May.

“Incorrect promotional activities were created for the Defendants’ promoter
The trading volume required for all defendants to offload their EMAX tokens
to unsuspecting investors. While the plaintiff and class members were buying
Inappropriately promoted EMAX tokens, defendants were able to sell and they did
their EMAX tokens during the relevant period to generate significant profits,” the complaint reads.

An EthereumMax spokesperson told MarketWatch that the allegations were part of a “deceptive narrative” about the company and claimed that the people who worked on the project last year were different from the people currently involved. Reps for Kardashian, Mayweather, and Pierce did not respond to MarketWatch’s request for comment for this story.

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“During my years representing athletes and celebrities, I have consistently advised them, beyond the legal language of any contract, to always make sure they have a real connection to the product or service they support,” Darren Heitner, a professor of sports law at the University of Florida, told MarketWatch in an email. Letter indicating the complaint. It is rarely beneficial for someone to enter into an unreal relationship with a brand, especially if that person has amassed a large fortune throughout their career. This is what makes a situation like this regarding EthereumMax so confusing.”

“Assuming the assertions in the complaint are true, Floyd Mayweather, Kim Kardashian, and Paul Pierce have engaged precisely in this opportunity for a payday and nothing more. The problem with this is that their fans and supporters often believe that their promotional efforts are genuine and rely on their statements, perhaps on their account,” Hytner continued.

While Kardashian was promoting EthereumMax, the UK’s Financial Conduct Authority (FCA) chief Charles Randle warned that EthereumMax was “a speculative digital token created a month ago by unknown developers.” He went on to accuse influencers of fueling cryptocurrency-related “get-rich-quick delusions”.

Cryptocurrency markets can be very volatile and it is important to make informed financial decisions when dealing with cryptocurrencies. Cryptocurrency Prices Head Down On Monday, Bitcoin BTCUSD
+ 2.66%
Prices briefly fell below the key price of $40,000 for the first time since September.

Read on: Bitcoin’s bearish sentiment continues. “It is hard to see when this will reverse,” analysts say.

“It seems especially easy to get people to spend money on crypto projects, which makes it even more important for athletes and celebrities to conduct thorough due diligence on these platforms before associating with companies and doing everything they can think of as just being money-hungry and connected to a pump-and-dump scam, Heitner said.