Many celebrities, including Kim Kardashian, Floyd Mayweather Jr., and Paul Pierce, are being sued for allegedly guiding investors into a cryptocurrency “pump and dump” scam.
A crypto fraud involving many high-profile celebrities is being investigated in the United States. In a recent case, these celebrities were named as defendants. Kim Kardashian, American boxer Floyd Mayweather, and NBA player Paul Pierce. He is accused of taking part in a pump and dump operation using the cryptocurrency EthereumMAX (EMAX). Investors that put their money into this coin are said to lose money at favorable pricing. Are these celebrities have broken state consumer protection laws in the United States? The investigation will examine these celebrities’ role in pushing that worthless cryptocurrency asset.
“Through social media marketing and other promotional activities, the company’s management, in collaboration with many celebrity promoters… made false or deceptive assertions about EthereumMax,” according to the complaint.
According to the complaint, Kardashian endorsed EthereumMax in a June 2021 Instagram post, when she had 250 million followers.
This Post’s screenshots are included in the lawsuit. “Are you guys into crypto?” reads Kardashian’s tweet. “This is not financial advice, but my friends have told me about the Ethereummax token.” In addition, Kardashian has included a swipe-up option in his Post. Those interested in EthereumMAX may be directed to ‘join the EMAX community’ due to this. Thanks to Post, the value of EMAX tokens is said to have surged by more than 1370 percent.
Mayweather wore EthereumMax on his boxing trunks during a high-profile battle with YouTube sensation Logan Paul in June, among other instances.
Requests for a response from Kardashian and Mayweather’s representatives were not immediately returned.
The firm, EthereumMax, was also mentioned in action.