EthereumMax

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<p class="is-style-lead">Kim Kardashian and Floyd Mayweather will find themselves in court, facing allegations of unlawful marketing of the now-defunct <a href="https://crypto.news/learn/how-to-invest-in-cryptocurrency/">cryptocurrency</a> token EthereumMax (EMAX).</p>



<p>After dismissing the case last year, US District Judge Michael Fitzgerald reinstated the complaint, granting the plaintiffs a second chance to pursue legal action against the high-profile celebrities.</p>



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<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">Kim Kardashian, Floyd Mayweather can’t evade EMax crypto investors’ claims, judge says <a href="https://t.co/Bhq7AIiEnY" target="_blank">https://t.co/Bhq7AIiEnY</a> <a href="https://t.co/ga3hVJyvL0" target="_blank">pic.twitter.com/ga3hVJyvL0</a></p>&mdash; Reuters (@Reuters) <a href="https://twitter.com/Reuters/status/1666613650038169600?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 8, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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<p>In January 2022, a class action lawsuit was filed against the two celebrities, accusing them of promoting a pump-and-dump scam in December 2022. While the California federal court dismissed some claims, the accusations of &#8220;unfair competition&#8221; against Kardashian and Mayweather for endorsing the EMAX token in 2021 were not dismissed by Judge Michael Fitzgerald in a recent order issued on June 6.</p>



<p>Kardashian promoted the EMAX token on Instagram in June 2021, while Mayweather sported the EMAX logo on his boxing trunks during his match with YouTube host Logan Paul.</p>



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<p>In October 2022, Kardashian faced charges from the SEC for unlawfully promoting <a href="https://crypto.news/learn/beginners-guide-to-crypto-wallets/">crypto</a> security and settled the case for $1.26 million related to her involvement in advertising EMAX.</p>



<p>The court deemed it necessary to revise the extensive 162-page lawsuit, which asserted that Kardashian, Mayweather, and NBA player Paul Pierce were profiting from endorsements at the expense of their fans, promoting an investment opportunity lacking a legitimate business plan.</p>



<p>Judge Fitzgerald argued that it was essentially a new complaint, given the involvement of different defendants and the allegations being presented.</p>



<p>The judge further stated that promoting a cryptocurrency token without disclosing compensation is an evil and unfair practice, highlighting that the famous defendants failed to provide compelling arguments in their favor.</p>



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<iframe title="Kim Kardashian, Floyd Mayweather Sued Over Crypto Endorsement" width="1020" height="574" src="https://www.youtube.com/embed/_X6xC_Y8R9c?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
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<p>However, he cautioned that Scott+Scott, the class action attorneys, would need to substantiate the impact of the celebrities&#8217; endorsements on the token&#8217;s pricing. According to Sean Masson of Scott+Scott, the foundation of the EMAX business strategy relied on deceptive celebrity endorsements.</p>



<p>Token buyers who believed in the authenticity of the celebrity endorsements are seeking unspecified damages in the class action lawsuit.</p>



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US judge revives crypto lawsuit against Kardashian and Mayweather

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