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Friday, January 21, 2022

Kim Kardashian and other celebrities accused of cryptocurrency

Celebrity Kim Kardashian, former NBA star Paul Pierce and boxer Floyd Mayweather used their fame to publicize a new cryptocurrency as part of a larger scheme to defraud investors, while profiting for themselves, Alleged in a lawsuit filed in California.

Lawyers filed a class-action lawsuit on January 7, claiming that all three acted as celebrity endorsers of EthereumMax, or EMAX, which was pitched to investors as a disruptive new cryptocurrency. But the complaint states that those endorsements were a ploy by the creators of EthereumMAX to raise the price of the token.

The creators of the digital coin – Steve Gentile of Connecticut and Giovanni Peron of Florida – sold their holdings of EthereumMAX “for a substantial profit,” according to the suit. The lawsuit states that Gentile and Peron “marketed the EMAX token to investors so that they could sell their share of the float for a profit.”

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EthereumMAX denied the allegations in a statement to CBS Moneywatch.

“The misleading narrative surrounding the recent allegations is fueled by misinformation regarding the Ethereum Max project,” a company spokesperson said. “The project prides itself on being one of the most transparent and communicative projects in the cryptocurrency space. We dispute the allegations and hope the truth comes out.”

Representatives for Kardashian, Mayweather and Pierce did not respond to requests for comment.

A group of celebrities have touted cryptocurrencies. Among the high-profile figures to return various digital coins to the public are: Matt Damon, Paris Hilton, Jamie Foxx, Ashton Kutcher, Gwyneth Paltrow and Dennis Cole, better known as Ghostface Killah of the Wu-Tang Clan.


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To be sure, celebrities have endorsed a range of products over the decades. But suing famous endorsers has historically proved difficult because lawyers must prove that the celebrity made money illegally.

The lawsuit, filed by New York investor Ryan Hughrich, did not specify who or how much Gentile and Peron sold their EthereumMAX for. The complaint also did not state whether Kardashian, Mayweather and Pierce profited from their stake in the cryptocurrency.

Nevertheless, Hugerich’s lawyers alleged that EMAX was a “pump and dump scam”, with celebrities promoting the token to increase its value, after which Gentile and Perón gave up their stake.

EMAX launched last May with an initial trading volume of $16.1 million, according to data from CoinMarketCap. The figure rose after social media postings by Kardashian and Pierce, as well as encouragement from Mayweather — such as signed boxing gloves, ringside tickets and discounts to those who purchased fight tickets online using Emax tokens — argues the lawsuit. At one point, EMAX’s trading volume increased to approximately $108 million.

In an Instagram post from June, Kardashian asked her more than 250 million followers, “Are you guys into crypto?”

“This is not financial advice, but sharing what my friends told me about the Ethereum MAX token,” Kardashian’s post read. “Ethereum Mac burned 400 trillion tokens a few minutes ago – literally giving 50% of their admin wallet back to the entire Emacs community.”

EthereumMax saw its price continue to rise after a month.

“However, this meteoric rise did not last long, and Ethereummax began deflating shortly after Kardashian’s post,” the court documents said. “On July 15, the price of the EMAX token hit an all-time low: $0.000000017 per unit, a 98% drop from which it could not recover.”

EthereumMax traded at the same $0.000000017 price on Wednesday.

The Kardashians, Pierce, Mayweather and the creators of Ethereum Max are being sued for breaches of California state law, unjust enrichment and other violations. The lawsuit does not disclose how much money Hughrich has invested in Ethereummax or how much damages he seeks.

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World Nation News Deskhttps://www.worldnationnews.com
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