EthereumMax

Dogecoin

Elon Musk

<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>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<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>
</div></figure>



<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>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            You might also like:
        </span>

    
    
        <a href="https://crypto.news/dogecoin-investors-strike-elon-musk-with-market-manipulation-lawsuit/" class="cn-block-related-link__link">
            Dogecoin investors strike Elon Musk with market manipulation lawsuit        </a>

    
</div>


<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>



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<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>
</div></figure>



<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>



<div class="cn-block-related-link">

    <svg class="cn-block-related-link__icon icon" aria-hidden="true">
        <use xlink:href="#icon-bookmark"></use>
    </svg>

    
        <span class="cn-block-related-link__prefix">
            Read more:
        </span>

    
    
        <a href="https://crypto.news/sec-accuses-binance-ceo-of-diverting-billions-in-customer-funds/" class="cn-block-related-link__link">
            SEC accuses Binance CEO of diverting billions in customer funds        </a>

    
</div>

US judge revives crypto lawsuit against Kardashian and Mayweather

crypto.news

Ďalšie články zverejnené 8. 6. 2023

SEC’s Gensler offered to advise Binance in 2019, lawyers claim

Is Cardano a Security? ADA's Decentralization Stats Compared to Bitcoin's

Regulatory Challenges Open the Door for CZ’s Potential Successor, Binance Hands Rising Star Richa...

US Government challenges Bittrex US’s motion to return customer crypto assets

Avalanche price prediction 2024-2030: Time to buy AVAX?

FCA Imposes Stricter Rules for Crypto Ads, Bans Referral Bonuses

Pripojte sa k nášmu bezplatnému bulletinu a získajte denné aktualizácie kryptomien!