Reality TV star Kim Kardashian, along with American boxer Floyd Mayweather, and NBA player Paul Pierce are facing legal scrutiny as part of a class-action lawsuit filed in the US state of California. All these celebrities have been sued for allegedly participating in an organized pump-and-dump scheme focused on EthereumMax (EMAX). The lawsuit claims that all investors who put money in crypto assets eventually lost their capital.
The charges leveled include violation of US state consumer protection laws, aiding and abetting, as well as the common law on unjust enrichment. The investigation into the lawsuit will follow the trail of these celebrities in promoting worthless cryptocurrency tokens.
To recall, in June of last year, Kim Kardashian posted about EMAX in a story format on her Instagram, which showed the post to over 270 million users for 24 hours. The post contained a swipe-up option redirecting people to join the EMAX community. Following this post, the cryptocurrency gained over 1,370 percent.
“are you guys into crypto 50 percent of the wallet was giving back to the entire eMax community,” said Kardashian’s later post, presented in the lawsuit in the form of a screenshot.
NBA player Paul Pierce promoted the cryptocurrency in a tweet embedded below:
,@espn I do not need you. I found @ethereum_max I made more money with this crypto last month and I did with you all in a year. TRUTH will set you free, my own masterhttps://t.co/3irnuWYve3 Check it out for yourself
— Paul Pierce (@paulpierce34) May 26, 2021
Subsequently, EthereumMax issued a press release stating that it was “the exclusive cryptocurrency accepted for online purchase of tickets for the highly anticipated Floyd Mayweather vs Logan Paul pay-per-view event.”
The complaint reads, “The Company’s executives, cooperating with a number of celebrity promoters, (a) through social media advertisements and other promotional activities made false or misleading statements to investors about EthereumMAX and (b) on EthereumMAX. concealed its control and a significant percentage of the EMAX tokens that were available for public trading during the relevant period.”
After all this, EMAX lost 98 percent of its value on July 15, 2021. It is currently trading around $0.000000016.
The group of investors who filed the suit is seeking monetary relief for the damages caused to them due to the alleged pump-and-dump scheme.
The post that took Kim Kardashian, Floyd Mayweather, Paul Pierce along with other celebrities to court over the crypto scam first appeared on BGR India.