Reality TV star Kim Kardashian and professional boxer Floyd Mayweather Jr. are facing a lawsuit. The reason for it is the celebrities led astray investors in their promotion of a cryptocurrency token.
The celebrities touted tokens sold by EthereumMax or EMAX. The idea was to boost its price and make a profit “at the expense of their followers and investors.”, claims the lawsuit, filed Jan. 7 in Los Angeles federal court. The lawsuit stated:
“The company’s executives, collaborating with several celebrity promoters … made false or misleading statements about EthereumMax through social media advertisements and other promotional activities.”
Kardashian promoted EthereumMax in a June 2021 post on Instagram, when she had 250 million followers, according to the lawsuit.
“Are you guys into crypto?” 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 the EthereumMax tokens. She included the #AD hashtag to show the post was a paid advertisement, the lawsuit said.
Mayweather promoted EthereumMax on his boxing trunks during a widely viewed fight with YouTube star Logan Paul in June. There were also other times he did that.
Representatives for Kardashian and Mayweather did not immediately respond to requests for comment.
EthereumMax, the company, was also named in the lawsuit. In a statement EthereumMax said:
“The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project. We dispute the allegations and look forward to the truth coming out.”
A New York resident who bought EMAX tokens and lost money filed the lawsuit. It is proposed as a class-action suit for anyone who bought EMAX tokens from mid-May to late June 2021. The case seeks restitution and disgorgement of profits by the defendants.