A class action complaint is being brought to the United States District Court, Central District of California against celebrities Kim Kardashian, former NBA star Paul Pierce and boxer Floyd Mayweather. Kardashian, Pierce, and Mayweather have all been accused of a cryptocurrency scheme breaking blockchain law, using their fame to convince people to invest in EthereumMax, a cryptocurrency token. The coin’s creators, Steve Gentile and Giovanni Perone are also being accused of using celebrities to inflate the price of the token. The celebrities promoted the token via their social media platforms where they have large followings, some of whom allegedly did not include a promotional disclosure with their posts.
According to court documents, “Following the EMAX Token’s launch and Defendants’ promotional activities in May 2021, the trading volume and price of EthereumMax surged.” But this surge did not last, as by July 15, 2021, the price of the EMAX token dropped 98% and has not been able to recover. “On August 1, its transaction volume plummeted to $157,423, which is less than a hundredth of its initial capital.”
Crypto company EthereumMax, its executives and three celebrity promoters, Kim Kardashian, Floyd Mayweather Jr., and Paul Pierce, face a new class action lawsuit for allegedly artificially inflating the price of EthereumMax Tokens that resulted in their own gain and investors’ loss. The lead plaintiff, Ryan Huegerich, alleges that EthereumMax Tokens (blockchain-based digital assets that are also called EMAX Tokens) were improperly promoted through high-profile events and social media. When “unsuspecting” investors began buying the tokens, the executives and promoters allegedly sold their own EMAX Tokens for “substantial profits.”
The celebrities and the EthereumMax creators are being sued for aiding and abetting, unjust enrichment and more under the California state law. Though celebrities promoting and endorsing products is not a new phenomenon, cryptocurrency is among the newest products to be sold by them. If you have questions about cryptocurrency or blockchain law, contact Michael Haeberle at email@example.com.