The reality TV star and the boxer are facing legal action, alleging they misled subscribers online into buying crypto as part of a ‘pumping-up’ scheme. and emptying ”.
Kim Kardashian and boxer Floyd Mayweather are facing legal action alleging they misled subscribers online into buying cryptocurrency as part of a “pump-and-go” scheme. emptying ”.
The lawsuit, filed Jan. 7 in federal court in Los Angeles, claims the celebrities made “false or misleading statements” while promoting a crypto token sold by ethereum, or EMAX.
Company executives have reportedly collaborated with influential celebrities to tout “the company’s prospects and the ability of investors to generate significant returns.”
“In truth, the defendants marketed the EMAX tokens to investors so that they could sell their share of the float at a profit,” the lawsuit adds.
Kardashian promoted an ad for ethereum last June on her Instagram account, when she had 250 million followers.
“Do you like crypto ???? This is not about financial advice, but sharing what my friends have told me about the ethereum max token! Kardashian wrote.
The post included the hashtag #ad, meaning it was a paid endorsement, although it’s not known how much Kardashian earned.
A Morning Consult study found that about one in five American adults had heard of the crypto-themed post.
Mayweather has promoted the token on several occasions, including before and during his exhibition boxing match with YouTube star Logan Paul in June. Ethereum officials touted the token as the “exclusive cryptocurrency accepted for online ticket purchase” for the game.
The lawsuit noted that the value of Ethereum tokens fell 98% from their peak last July, weeks after celebrity approval.
The class action lawsuit, filed on behalf of New York resident Ryan Huegerich, seeks to represent people who purchased the token between May 14 and June 27 of last year.
ethereum denied the allegations and said they were “eagerly awaiting the truth to come out.”
“The misleading account associated with the recent allegations is riddled with misinformation about the Ethereum project,” the statement told Reuters.
Representatives for Mayweather and Kardashian did not respond to a request for comment on the trial, Reuters reported.
Mayweather has been subject to legal scrutiny over its cryptocurrency-related transactions in the past. In 2018, Mayweather agreed to pay the SEC more than $ 600,000 to settle charges that he failed to disclose payments he received for promoting an “initial coin offering.”
This story originally appeared in the New York Post and is reproduced here with permission