Kim Kardashian and Floyd Mayweather have been dragged into a class-action suit for their promotion of cryptocurrency EthereumMax, which has now been deemed a scam.
Per the Hollywood Reporter, the lawsuit was filed on Friday in California federal court, and it accuses the stars of colluding with EMAX co-founders Steve Gentile and Giovanni Perone, in their organized pump-and-dump scheme, “causing investors to purchase these losing investments at inflated prices.”
The suit essentially accuses the celebrities of promoting worthless tokens.
“The Company’s executives, collaborating with several celebrity promotors, (a) made false or misleading statements to investors about EthereumMax through social media advertisements and other promotional activities and (b) disguised their control over EthereumMax and a significant per cent of the EMAX Tokens that were available for public trading during the Relevant Period,” the complaint reads.
Complex adds that back in June, Kim promoted EthereumMax to her 250 million followers on Instagram, saying: “Are you guys into crypto?Huh?” Kim wrote. “This is not financial advice but sharing what my friends just told me about the Ethereum Max token! A few minutes ago Ethereum Max burned 400 trillion tokens—literally 50% of their admin wallet giving back to the entire E-Max community.”
We can’t wait to see how this suit pans out.