Kim Kardashian and Floyd Mayweather sued in crypto scam lawsuit
EthereumMax has fallen 97.1% since May all-time high
Kim Kardashian, Floyd Mayweather and a number of other celebrities are being sued for allegedly misleading investors into a cryptocurrency ‘pump and dump’ scam.
The class-action lawsuit, filed on behalf of a New York resident last Friday in the US District Court for the Central District of California centres on EthereumMax, a progressive ERC-20 token built on the Ethereum network.
With a total supply of two quadrillion, the cryptocurrency – which is unrelated to the cryptocurrency Ethereum – rose to an all-time high of $0.00000060 last May. It has since fallen by 97.1% to $0.000000017.
The celebrities and other defendants are accused of making “false or misleading statements to investors about EthereumMax through social media advertisements and other promotional activities”.
Boxing legend Mayweather promoted the token in the run-up to his boxing match with YouTube star Logan Paul in June 2021. Indeed, tickets for the popular exhibition match could be bought with EthereumMax.
Mayweather’s seeming endorsement of the token at the Bitcoin 2021 conference in June provoked boos from those in attendance.
Kardashian Insta post
Kim Kardashian’s support amounted to an Instagram post on 14 June 2021 in which she asked her more-than 270 million followers: “Are you guys into crypto???? This is not financial advice but sharing what my friends just told me about the Ethereum Max token.”
In addition to the hashtags #DISRUPTHISTORY and #EMAX, the reality television star’s post included #AD, suggesting it was a paid promotion.
At the time, an EtherereumMax representative stated that Kardashian’s post “was simply intended to raise awareness of the project and its utility”.
More recently, EthereumMax condemned the “deceptive narrative associated with the recent allegations”, describing them as “riddled with misinformation”.