Did Kim K mislead her 278 million Instagram followers by telling them to “join the EthereumMax Community?”
What about Floyd Mayweather Jr., who was promoting EthereumMax during the buildup to his fight with Logan Paul last summer?
The U.S. District Court for the Central District of California thinks so, and Kardashian, Mayweather, and former NBA star Paul Pierce are all listed as defendants in a class-action lawsuit filed last Friday. The co-founders of EthereumMax are also listed in the lawsuit.
The Feds are saying the celebs led investors into a crypto “pump and dump” scam by promoting the tokens to their massive followings.
The lawsuit accuses them of making “false or misleading statements to investors about EthereumMax through social media advertisements and other promotional activities.”
Let’s just say the federal prosecutors behind the lawsuit aren’t impressed with EthereumMax and called the cryptocurrency a “speculative digital token created by a mysterious group of cryptocurrency developers.”
Wow, not a ringing endorsement. The lawsuit claims the celebrities encouraged their loyal followers to buy EthereumMax, but the stars then sold their holdings when the price was inflated.
According to the government, that’s the definition of a “pump and dump” scheme.
It’s hard to deny the celebs made money, since Paul Pierce tweeted this message out in the middle of his feud with ESPN.
“.@espn I don’t need you. I got @ethereum_max I made more money with this crypto in the past month then [sic] I did with y’all in a year.”
The lawsuit was filed by a New York resident named Ryan Huegerich, who purchased tokens and lost money between May and June of last year.
EthereumMax said they didn’t do anything wrong. “The deceptive narrative associated with the recent allegations is riddled with misinformation.”
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