A lawsuit has been filed against reality TV star Kim Kardashian and former boxing champion Floyd Mayweather, alleging that they "misled" investors while promoting a cryptocurrency token.
Both Kardashian and Floyd are being sued for allegedly duping investors in a cryptocurrency "pump and dump scam". They are accused of making "false or misleading statements to investors about EthereumMax (EMAX) through social media advertisements and other promotional activities," according to the lawsuit.
According to Fox Business, court documents filed in the US District Court for the Central District of California list Kardashian, Mayweather, a former basketball player, and EthereumMax's co-founders as defendants.
According to the lawsuit, the defendants promoted the tokens in order to raise their prices and profit "at the expense of their followers and investors" before selling them at a premium.
According to court documents, Kardashian promoted EMAX to her 250 million Instagram followers in June 2021. "Are you guys into crypto?" Kardashian asked in a post, adding that "this is not financial advice." She stated that she wanted to share "what my friends just told me" about the tokens and added the hashtag #AD to indicate that it was a paid promotion.
EMAX was also promoted on Mayweather's boxing gear during a fight in 2021.
Ryan Huegerich filed the lawsuit on behalf of himself and others who lost money after purchasing EMAX tokens between May and June 2021.
According to the lawsuit, EMAX is a "speculative digital token created by a mysterious group of cryptocurrency developers."
A spokesperson for EMAX said in a statement that the "deceptive narrative associated with the recent allegations is riddled with misinformation" about the project, and that the company "“dispute the allegations and look forward to the truth coming out".
By fLEXI tEAM