A class action lawsuit named Kim kardashian, Floyd mayweather and basketball star Paul Pierce as indicted for promoting a cryptocurrency called EthereumMax.
According Finboldthe plaintiffs sued the celebrities and as-yet-unidentified entities behind the tokens for making the value of the digital currency of Ethereum so that they “could sell their share of the Float to make a profit. ”
The lawsuit lists anyone who invested in the token between May 14 and June 27, 2021 as a defendant.
After value increase, price plummets
As the specialized portal Engadget explains, the plaintiffs accuse the defendants of perpetrating a “pump and dump” scheme, in which investors sell their shares to earn a lot of money after orchestrating an increase in their value.
The lawsuit states that the coin increased 632% in value after Mayweather Y Pierce promoted it: the boxing star wore shorts with the URL of EthereumMax during his exhibition match with Logan Paul, while Pierce tweeted about it.
Meanwhile, Kardashian published on EthereumMax in Instagram Storiestelling followers that they found out from their friends and linked to their website.
According Morning consult19% of the respondents who said they had heard of the publication of Kardiashian invested in EthereumMax as a result.
The lawsuit establishes that the day after the publication of Kardashianthe token’s value plummeted by 98%. Furthermore, the creators of the coin allegedly sold their shares prior to the price drop, as shown by their wallet activities.
Celebrities and cryptocurrencies
Celebrities have been promoting tokens of cryptocurrencies for a while and have even created their own.
This is neither the first nor the last time they have been embroiled in controversies around a token: Mayweather, for example, was indicted by the Securities and Exchange Commission in 2018 for not disclosing that he was paid $ 100,000 to promote Centra.
Two of the founders of Centra Tech They were arrested for securities fraud and wire fraud, and accused by the SEC of “promoting non-existent relationships between Centra and known financial institutions” in an effort to entice people to invest in the ICO.
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