Reality TV star Kim Kardashian, American boxer Floyd Mayweather, and NBA player Paul Pierce along with others are facing a legal investigation as a part of a class-action lawsuit filed in the state of California, US. All of these celebrities have been sued for allegedly participating in an organised pump-and-dump scheme focused around EthereumMax (EMAX). The lawsuit claims that all investors who invested money in the crypto asset eventually lost their capital. Also Read - How to hide your online status on Instagram
The charges imposed include violations of US state consumer protection laws, common law over aiding and abetting as well as unjust enrichment. The investigation for the lawsuit will follow the trace of these celebrities in promoting worthless cryptocurrency tokens. Also Read - Crypto.com CEO confirms major data breach: Here’s what we know so far
To recall, back in June last year, Kim Kardashian posted about EMAX on her Instagram in a Story format, which showed the post for 24 hours to her over 270 million users. The post had a swipe-up option redirecting people to join the EMAX community. After this post, the cryptocurrency gained over 1,370 percent. Also Read - Instagram starts testing subscription service for creators
“Are you guys into crypto???? This is not financial advice but sharing what my friends just told me about the EthereumMax token! A few minutes ago Ethereum Max burned 400 trillion tokens – literally 50 percent of their admin wallet giving back to the entire EMAX community,” Kardashian’s later post stating this has been submitted in the lawsuit as a screenshot.
NBA player Paul Pierce promoted the cryptocurrency in a tweet embedded below:
.@espn I don’t need you. I got @ethereum_max I made more money with this crypto in the past month then I did with y’all in a year. TRUTH shall set u Free 🤪🤪 my own Bosshttps://t.co/3irnuWYve3 check it out for yourself
— Paul Pierce (@paulpierce34) May 26, 2021
After this, EthereumMax issued a press release stating it was “the exclusive cryptocurrency accepted for online ticket purchasing for the highly anticipated Floyd Mayweather vs. Logan Paul Pay-Per-View event.”
The complaint reads, “The Company’s executives, collaborating with several celebrity promoters, (a) made false or misleading statements to investors about EthereumMax through social media advertisements and other promotional activities and (b) disguised their control over EthereumMax and a significant percent of the EMAX tokens that were available for public trading during the relevant period.”
After all of this, on July 15, 2021, EMAX lost 98 percent of its value. It is currently trading at around $0.000000016.
The group of investors who have filed the suit are seeking monetary relief for the damages caused to them due to the alleged pump-and-dump scheme.