- According to a complaint filed in California, Kim Kardashian, former NBA star Paul Pierce, and boxer, Floyd Mayweather exploited their influence to promote a new cryptocurrency as part of a bigger plot to deceive investors while benefitting for themselves.
- Strange things are bound to happen when more celebrities dip their toes into the Bitcoin world. For example, Kim Kardashian is currently being sued for a “pump and dump” scheme involving a fictitious altcoin.
- Investors in the EthereumMax cryptocurrency have sued three celebrities, including Kim Kardashian.
According to CNBC, the reality TV personality, together with boxer Floyd Mayweather and basketball player Paul Pierce, was sued for marketing a cryptocurrency that reportedly made its inventors extremely wealthy at the expense of investors. Boxer Floyd Mayweather Jr., basketball player Paul Pierce, and the currency’s inventors are among the other accused.
The creators of the cryptocurrency EthereumMax (EMAX), according to the lawsuit, exploited it in a “pump and dump” scheme. This is a sort of deception in which the makers of an item, such as stocks or, in this case, cryptocurrency, artificially inflate its value in order to sell it at a high price and leave the investors with nothing.
The celebrities are accused of working with EthereumMax to “misleadingly promote and sell” the cryptocurrency, according to the lawsuit.
EthereumMax has denied the charges and stated that it is looking forward to the truth being revealed.
It claims that the defendants “touted” the ability of “investors to make significant returns,” resulting in an artificial increase in the price of the crypto-currency, “causing investors to purchase these losing investments at inflated prices,” allowing the executive staff of EthereumMax named in the legal action to “sell their EMax tokens to investors for a profit.”
“In plain terms,” the court petition claims, “EthereumMax’s whole business strategy relies on ongoing marketing and promotional activities, frequently from ‘trusted’ celebrities, to deceive potential investors into trusting the financial opportunities.”
According to Gizmodo, Mayweather and Pierce both endorsed the cryptocurrency in May 2021, after which the price of the cryptocurrency skyrocketed by 632 per cent.
Then, in a post that contained a note that it was sponsored marketing, the “Keeping Up with the Kardashians” actress promoted the cryptocurrency via her Instagram Story. However, the price of EMAX plummeted the day after she advocated it.