Fear of more scams taking place in the cryptocurrency market has investors inspired to solve the problem of bogus cryptocurrencies themselves.
A class-action lawsuit filed on January 7 by Ryan Huegerich and other plaintiffs lists Kim Kardashian, Floyd Mayweather Jr, and Paul Pierce as defendants for promoting EthereumMax (EMAX), an Ethereum counterfeit token.
The investors purchased the token between May 14 and June 27 of last year. The class-action lawsuit has been published at classaction.org, a public resource for class-action lawsuits.
In the lawsuit, it was stated that “defendants touted the prospects of the Company [EMAX] and the ability for investors to make significant returns due to the favorable ‘tokenomics’ of the EMAX Tokens.”
Aside from the complaint filed against the celebrities that endorsed the token, Ryan Huegerich plans to also sue the unknown business entity responsible for EthereumMax (EMAX), and this is supposed to be found out during the discovery for the original defendants, per the complaint.
In May 2021, EthereumMax (EMAX) hit an ATH of $0.0000008546. At the time of writing though, the cryptocurrency was trading 97% below the all-time high at $0.0000000197.
Kim Kardashian took to Instagram to promote the token, by posing the following question to her followers: “Are you guys into crypto???? This is not financial advice but sharing what my friends just told me about the Ethereum Max token!”
Among other investors, crypto investors are more prone to seek the support of celebrity influencers. The post by Kim Kardashian, per the Morning Consult survey, resulted in a conversion rate of 19%.
Charles Randell, the Chairman of the Financial Conduct Authority in the UK criticized Kim Kardashian for making such a post given that the token is quite volatile. According to Randell, Kim’s financial post reached more people than any other financial promotion ever made.
Paul Pierce took to Twitter to promote EthereumMax (EMAX) after throwing shade at ESPN, his former employer.
.@espn I don’t need you. I got @ethereum_max I made more money with this crypto in the past month then I did with y’all in a year. TRUTH shall set u Free 🤪🤪 my own Bosshttps://t.co/3irnuWYve3 check it out for yourself
— Paul Pierce (@paulpierce34) May 26, 2021
Floyd Mayweather wore a t-shirt with the cryptocurrency’s logo in his encounter with Logan Paul during an exhibition boxing bout.
Whether the plaintiffs have a case against the celebrities or not will be apparent as the case unfolds.
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