Kim Kardashian, Floyd Mayweather Jr. sued for alleged crypto-fraud


Reality TV star and ex-boxing master was paid to hype blockchain-based EthereumMax digital tokens to their fans

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Kim Kardashian and Floyd Mayweather Jr. was sued for allegedly cheating investors in a cryptocurrency called EthereumMax.

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The reality TV star and ex-boxing master was paid to hype the blockchain-based digital tokens to their fans, “which prompted investors to buy these losing investments at high prices,” according to the lawsuit filed in Los Angeles federal court. Former Boston Celtic Paul Pierce was also mentioned as an accused in the case.

Kardashian was called out in September by a British financial regulator to lure his 250 million Instagram followers into the “encryption bubble with delusions of quick riches.”

Mayweather, one of his sports’ most recognizable personalities, has previously encountered regulators to promote investment in cryptocurrency. He was fined by the U.S. Securities and Exchange Commission in 2018 for announcing initial coin offers on social media without revealing that he had been paid to do so.

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The lawsuit was filed as a proposed class action lawsuit on behalf of anyone who purchased EMAX tokens from mid-May to late June. The lawsuit cites violations of California consumer protection laws and seeks compensation for “the difference between the purchase price of EMAX tokens and the price the EMAX tokens sold for.”

The case is Huegerich v. Gentile, 22-cv-00163, U.S. District Court, Central District of California (Los Angeles).

Bloomberg.com

To learn more about cryptocurrencies and the blockchain industry, sign up for the Financial Posts free virtual event series FP CryptoDecoded presented by NDAX. Visit: CryptoDecoded.FinancialPost.com



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