Kim Kardashian, Floyd Mayweather sued over promotion of crypto token
LOS ANGELES (Reuters) – Truth television star Kim Kardashian and boxing legend Floyd Mayweather Jr. are dealing with a suit declaring the stars misguided financiers in their promo of a cryptocurrency token.
The suit, submitted Jan. 7 in Los Angeles federal court, declares the stars promoted tokens offered by EthereumMax, or EMAX, in order to enhance its rate and make themselves an earnings “at the expense of their followers 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 suit mentioned.
According to the suit, Kardashian promoted EthereumMax in a June 2021 post on Instagram, when she had 250 million fans.
“Are you guys into crypto?” she composed in the post, followed by the disclaimer “this is not financial advice”, however that she wished to share “what my friends just told me” about the EthereumMax tokens. She consisted of the #AD hashtag to reveal the post was a paid ad, the suit stated.
Mayweather promoted EthereumMax on his boxing trunks throughout an extensively seen battle with YouTube star Logan Paul in June, to name a few times.
Agents for Kardashian and Mayweather did not right away react to ask for remark.
EthereumMax, the business, was likewise called in the suit.
“The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project,” EthereumMax stated in a declaration. “We dispute the allegations and look forward to the truth coming out.”
The suit, submitted by a New york city homeowner who purchased EMAX tokens and lost cash, is proposed as a class-action fit for anybody who purchased EMAX tokens from mid-May to late June 2021.
The case looks for restitution and disgorgement of revenues by the offenders.
(Reporting by Lisa Richwine; Modifying by Karishma Singh)
Jobber Wiki author Frank Long contributed to this report.