Kim Kardashian and Floyd Mayweather Jr. were sued for allegedly scamming investors in a cryptocurrency called EthereumMax.
The reality television star and ex-boxing champion were paid to hype the blockchain-based digital tokens to their fans, “causing investors to purchase these losing investment at inflated prices.”
According to Reuters, the lawsuit, filed Jan. 7 in Los Angeles federal court, claims the celebrities touted tokens sold by EthereumMax, or EMAX, in order to boost its price and make themselves a profit “at the expense of their followers and investors.”
“The company’s executives, collaborating with several celebrity promoters … made false or misleading statements about EthereumMax through social media advertisements and other promotional activities,” the lawsuit stated.
“The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project,” EthereumMax said in a statement. “We dispute the allegations and look forward to the truth coming out.”
The lawsuit, filed by a New York resident who bought EMAX tokens and lost money, is proposed as a class-action suit for anyone who bought EMAX tokens from mid-May to late June 2021.
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