A lawsuit claims that reality TV star Kim Kardashian and boxing icon Floyd Mayweather Jr. misled investors in their promotion of a cryptocurrency token.
The lawsuit, filed Jan. 7 in federal court in Los Angeles, argues that the celebrities promoted EthereumMax, or EMAX, tokens in order to enhance their price and profit “at the expense of their fans and investors.”
“The company’s executives, collaborating with several celebrity promoters … made false or misleading statements about EthereumMax through social media advertisements and other promotional activities,” the lawsuit stated.
According to the lawsuit, Kardashian promoted EthereumMax in a June 2021 post on Instagram, when she had 250 million followers.
“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, among other times.
Representatives for Kardashian and Mayweather did not immediately respond to requests for comment.
EthereumMax, the company, was also named in the lawsuit.
“The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project,” EthereumMax said in a statement. “We dispute the allegations and look forward to the truth coming out.”
The complaint, which was filed by a New York citizen who lost money after purchasing EMAX tokens, is being presented as a class-action suit for everyone who purchased EMAX tokens between mid-May and late-June 2021.
The defendants are being sued for reparations and profit disgorgement.