EthereumMax cryptocurrency investors have sued three celebrities, including Kim Kardashian.
Boxer Floyd Mayweather Jr., Paul Pierce, a basketball player, and other currency’s inventors are among the other accused.
The celebrities are accused of working with EthereumMax to have misleadingly promoted and sold the aforementioned digital token, according to the lawsuit.
EthereumMax has denied the charges and stated that it is looking forward to the truth being revealed.
EthereumMax, despite its name, doesn’t have any legal or business ties to the Ethereum cryptocurrency.
EthereumMax is accused of operating a “pump and dump” operation, in which deceptive marketing is used to increase the price of an asset, which is subsequently sold to unknowing investors for a profit.
According to the complaint, the company’s executives, in collaboration with many celebrity promoters made “false or misleading” assertions “to investors about EthereumMax, through social-media commercials and other promotional activities.”
It claims that the defendants “touted” the ability of “investors to make significant returns,” resulting in an artificial increase in the price of the crypto-currency, “causing investors to purchase these losing investments at inflated prices,” allowing the executive staff of EthereumMax named in the legal action to “sell their EMax tokens to investors for a profit.”
“In plain terms, EthereumMax’s entire business model relies on using constant marketing and promotional activities, often from ‘trusted’ celebrities, to dupe potential investors into trusting the financial opportunities,” the court filing claims.
It also claims that Mr Pierce, a former NBA player, endorsed EthereumMax in a “widely publicised” Twitter post in May 2021, “praising EthereumMax’s ability to produce make for him.”
In the meantime, EthereumMax began to advertise the cryptocurrency by using former world champion Floyd Mayweather’s boxing battle with YouTuber Logan Paul.
At a cryptocurrency convention, Mr. Mayweather is believed to have endorsed EthereumMax.
Further, the complaint claims that reality star Kim Kardashian posted on Instagram, writing, “This is not financial advice but sharing what my friends tell me about the EthereumMax token.”