Reuters
Reality TV star Kim Kardashian and boxing legend Floyd Mayweather Jr. are facing a lawsuit that accuses celebrities of deceiving investors by promoting a cryptocurrency token.
The lawsuit, filed Jan. 7 in federal court in Los Angeles, alleges that celebrities publicized tokens sold by the company EthereumMax, or EMAX, to boost their price and make a profit “at the expense of their followers and investors.”
“Company executives, collaborating with various celebrity promoters… have made false or misleading statements about EthereumMax through social media ads and other promotional activities,” the lawsuit stated.
According to the lawsuit, Kardashian promoted EthereumMax in a June 2021 Instagram post when she had 250 million followers.
“Do you like cryptocurrencies?” she wrote in the post, followed by the disclaimer “this is not financial advice” but that she wanted to share “what my friends just told me” about EthereumMax tokens. She included the hashtag #AD to show that the post was a paid advertisement, the lawsuit said.
Mayweather promoted EthereumMax on his boxing shorts during a widely seen fight with YouTube star Logan Paul in June, among other times. Representatives for Kardashian and Mayweather have not commented at the time of writing.
The EthereumMax company was also named in the lawsuit. “The misleading narrative associated with the recent allegations is rife with misinformation about the EthereumMax project,” the company said in a statement. “We dispute the allegations and hope the truth will be revealed.”
The lawsuit, filed by a New York resident who bought EMAX tokens and lost money, is proposed as a class action suit for anyone who bought EMAX tokens between mid-May to the end of June 2021.
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