Kim Kardashian, Floyd Mayweather are being sued by cryptocurrency investors

Kim Kardashian, Floyd Mayweather are being sued by cryptocurrency investors

Several high-profile celebrities are accused of defrauding crypto investors

Kim Kardashian and Floyd Mayweather Jr. were sued for allegedly defrauding investors in a cryptocurrency called EthereumMax (EMAX). The reality TV star and the former boxing champion were paid to use their influence to promote blockchain-based digital tokens to their fans. This caused investors to buy these losing investments at significantly inflated prices. Former Boston Celtic Paul Pierce was also named as a defendant in the lawsuit.

Kardashian was denounced a few months back by a UK financial regulator for luring her 250 million Instagram followers into the “crypto bubble with delusions of quick riches.” On the other hand, Mayweather, who is definitely one of the most recognizable personalities in his sport, has previously run afoul of regulators for promoting cryptocurrency investments. He was fined by the US Securities and Exchange Commission (SEC) four years ago for promoting initial coin offerings on social media without disclosing that he had been paid to do so.

The January 7 lawsuit was reported earlier by the Wall Street Journal. EMAX is described in the lawsuit as a “speculative digital token created by a mysterious group of cryptocurrency developers,” who are also named as defendants in the case.

“Defendants touted the prospects of the Company and the ability for investors to make significant returns due to the favorable “tokenomics” of the EMAX Tokens,” reads the lawsuit, filed on Friday in California federal court. “In truth, Defendants marketed the EMAX Tokens to investors so that they could sell their portion of the Float for a profit.”

The case was filed as a class-action lawsuit brought on behalf of all those who purchased EMAX tokens in a period from mid-May through the end of June last year. The complaint cites violations of California consumer protection laws and its main purpose is to seek restitution for the difference between the purchase price of EMAX tokens and the price for which those EMAX tokens were sold.



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