Kim Kardashian and Floyd Mayweather sued for promoting alleged crypto pump and dump scheme

What just happened? A group of investors have filed a lawsuit against Kim Kardashian, Floyd Mayweather and basketball star Paul Pierce for promoting the EthereumMax cryptocurrency. The celebrities are accused of making false or misleading statements about the play “through social media ads and other promotional activities.”

EthereumMax, which is unrelated to Ethereum, saw its price skyrocket in early 2021 when its initial trading price of $ 0.00000006 (May 16) jumped more than 1,000% on May 29. The increase in value came after it was used to purchase tickets to the Mayweather / Logan Paul Exhibition Boxing Match – Mayweather also wore an EthereumMax URL ad on his shorts during the fight – and Pierce tweeted about crypto.

Another major contributor to his promotion was Kardashian, who posted on EthereumMax to his 278 million Instagram followers via Stories. While the influencer added a small disclaimer that it was a paid ad, she claimed in the post that she had heard about the piece from friends, and it didn’t sound like an ad. According to Morning Consult, 19% of respondents who heard of Kardashian’s post invested in EthereumMax.

But EthereumMax’s price fell 98% the day after Kardashian’s post and continued to drop, eventually falling below its starting value. It is alleged that the coin’s creators sold their tokens before the dip, as shown by their wallet addresses, making a lot of money in the process and leaving investors to hold nearly worthless crypto.

The celebrities and the creators of EthereumMax are both named as defendants in the New York lawsuit. Complainants are listed as anyone who invested in the coin between May 14, 2021 and June 27, 2021 and was “thereby damaged” by the coin’s trajectory.

Crypto pump and dump scams, particularly the ones in which influencers / celebrities are promoting the coin, aren’t new, and this isn’t the first time Mayweather has been caught up in a controversy over the coin. promotion of crypto. The boxer and DJ Khaled were both hit with massive SEC fines in 2018 for not disclosing that they were paid to promote Initial Coin Offerings (ICOs).

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