Both Kim Kardashian and Floyd Mayweather are being sued by investors for allegedly promoting EthereumMax in a misleading way. EthereumMax (EMAX) responded and disputed the allegations, but the lawsuit filed on January 7 in Los Angeles federal court is a fact.
EthereumMax, despite its name, has no legal or business relations with the crypto-currency Ethereum. The former is a token built on the same blockchain technology and, like many other similar crypto tokens, ended as a bump and dump. At the beginning of June, after a massive surge, it lost 98% of its value in a few hours.
According to the lawsuit, the company's executives, collaborating with several celebrity promoters, misled the public through social media. In June, Kardashian had an Instagram post promoting EthereumMax. “Are you guys in crypto?” she asked.
The celebrity also stated that this “is not financial advice but sharing what my friends just told me about the Ethereum Max Token”.
Later in the post, Kardashian continues, saying that “a few minutes ago Ethereum Max burned 400 trillion token- literally 50% of their admin wallet giving back to the Emax Community”.
Back then, she received a lot of criticism for her actions. Her critics were sceptical about her knowledge of crypto, and there were open discussions about whether Ethereum Max is “legit or scam”. For the past few years, the crypto market experienced several bump and dump cases in which suspicious tokens were promoted by influencers to entice their fans into potentially fraudulent schemes.
By far, Kim Kardashian is the most prominent celebrity to participate in promoting questionable tokens. In other cases, the influencers claimed that they were not really aware of the intentions of the people who created the token, and they were just being paid for the promotion.
Rumours say that Kardashian may have received up to 10 million USD for the post, but the actual sum is still to be confirmed. By far, EthereumMax responded, saying that “We dispute the allegations and look forward to the truth coming out.”