The lawsuit, filed Jan 7 in Los Angeles
federal court, claims the celebrities touted tokens sold by EthereumMax, or
EMAX, in order to boost its price and make themselves a profit “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 lawsuit stated.
According to the lawsuit, Kardashian promoted
EthereumMax in a June 2021 post on Instagram, when she had 250 million
“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
Representatives for Kardashian and Mayweather
did not immediately respond to requests for comment.
FILE PHOTO: Aug 26, 2017; Las Vegas, NV, USA; Floyd Mayweather Jr lands a hit against Conor McGregor during their boxing match at the at T-Mobile Arena. Mandatory Credit: Mark J Rebilas-USA TODAY Sports/File Photo
EthereumMax, the company, was also named in
“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 lawsuit, filed by a New York resident who
bought EMAX tokens and lost money, is proposed as a class-action suit for
anyone who bought EMAX tokens from mid-May to late June 2021.
The case seeks restitution and disgorgement of
profits by the defendants.