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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.
According to the lawsuit, Kardashian promoted EthereumMax in a
June 2021 post on Instagram, when she had 250 million followers.
"Are you guys into crypto?" she wrote in the post, followed by
the disclaimer "this is not financial advice", but that she
wanted to share "what my friends just told me" about the
EthereumMax tokens. She included the #AD hashtag to show the
post was a paid advertisement, the lawsuit said.
Mayweather promoted EthereumMax on his boxing trunks during a
widely viewed fight with YouTube star Logan Paul in June, among
other times.
Representatives for Kardashian and Mayweather did not
immediately respond to requests for comment.
EthereumMax, the company, was also named in the lawsuit.
"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.
The case seeks restitution and disgorgement of profits by the
defendants.
(Reporting by Lisa Richwine; Editing by Karishma Singh)
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