Kim Kardashian, a celebrated figure in the entertainment industry, has faced a setback in her legal battle against allegations of deceiving investors through the promotion of EthereumMax (EMAX), a cryptocurrency.
Meanwhile, former professional boxer Floyd Mayweather Jr. has received a more favorable ruling regarding his involvement in the promotion of EMAX.
The lawsuits involve investors who claim to have suffered financial losses due to misleading marketing tactics employed by celebrity endorsers.
Kim Kardashian finds herself entangled in a legal dispute as she attempts to defend herself against accusations of scamming investors in the EthereumMax cryptocurrency. The investors claim that Kardashian falsely hyped the digital tokens, leading them to pay inflated prices. However, her efforts to have the lawsuit dismissed have been unsuccessful, with U.S. District Judge Michael Fitzgerland rejecting her arguments.
Judge Deems Kardashian’s Social Media Posts “Literally False”
One of the key elements of the lawsuit revolves around Kardashian’s social media posts, where she mentioned that EMAX tokens would be accepted as payment for table reservations at certain nightclubs. Judge Fitzgerald determined that the investors’ claims of these posts being “liberally false” were valid. Additionally, the judge found a post by Kardashian suggesting that EMAX tokens were scarce to be misleading.
Investors Granted Opportunity to Revise Allegations Against Mayweather
In addition to their claims against celebrity endorsers like Kardashian, investors have filed lawsuits against several co-founders and consultants of EthereumMAX. Specifically, they allege that Floyd Mayweather Jr., a former boxing champion, failed to disclose that he was being paid to promote EMAX. The judge has allowed the investors to revise and refile their allegations against Mayweather, who had a relatively more favorable outcome compared to Kardashian.
Judge Gives Warning and Acknowledges Improvements
Despite allowing the investors to proceed with their claims, Judge Fitzgerald cautioned their lawyers to address the remaining deficiencies in their revised complaint. He emphasized that this opportunity may be their last chance to rectify any shortcomings before potential dismissal. The judge acknowledged the improvements made by the investors’ legal representatives in their revised complaint, stating that they had “artfully cured” some of the previous deficiencies.
Settlement and SEC Allegations Against Kardashian
In October, the U.S. Securities and Exchange Commission (SEC) announced that Kim Kardashian had agreed to a settlement amount of $1.26 million to resolve allegations of violating U.S. rules by promoting EMAX tokens without proper disclosure.
The SEC alleged that Kardashian failed to disclose a payment of $250,000 she received for posting about the tokens on her Instagram account. Kardashian settled the case without admitting or denying the allegations and agreed to refrain from endorsing any additional digital assets for three years.
Today @SECGov, we charged Kim Kardashian for unlawfully touting a crypto security.
This case is a reminder that, when celebrities / influencers endorse investment opps, including crypto asset securities, it doesn’t mean those investment products are right for all investors.
— Gary Gensler (@GaryGensler) October 3, 2022
EthereumMax Sees Price Fluctuations Amidst Lawsuit
In the mindset of the legal battles surrounding EthereumMax (EMAX), the cryptocurrency’s price is currently recorded at $0.000000004131. Over the past 24 hours, EMAX has experienced a trading volume of $1,188, with a decline of 4.19% during the period. Presently, it stands at an 18.33% decrease from its 7-day all-time high of $0.000000005057, while showing a 6.05% increase from its 7-day all-time low of $0.000000003895. Notably, the maximum supply of EMAX tokens is 2,000,000 B EMAX.
As legal proceedings continue to unfold, the price and performance of EthereumMax may experience fluctuations influenced by market sentiment and investor reactions to the ongoing developments.
