The BBC reported yesterday that Kim Kardashian is one of three celebrities currently being sued by investors in the EthereumMax cryptocurrency.
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Misleading Promotion & Sales of Cryptocurrency
Kardashian, along with boxer Floyd Mayweather Jr and basketball player Paul Pierce, allegedly collaborated with EthereumMax to 鈥渕isleadingly promote and sell鈥� the cryptocurrency.
The legal action filed against these celebrities claims that EthereumMax was operating a 鈥減ump and dump鈥� scheme; using misleading marketing in order to boost the price of an asset and upsell it to unknowing investors.
EthereumMax, not to be confused with Ethereum, describes itself as a 鈥渃ommunity based token that provides a 0% tax on buys鈥�.
The company was accused of collaborating with household name celebrities, such as Kardashian, to promote EthereumMax and share misleading statements across social media.
It is alleged that the price of the cryptocurrency was mis-promoted to investors causing them to purchase 鈥渓osing investments at inflated prices鈥�.
The integrity of EthereumMax鈥檚 entire business model and marketing strategy is at stake with the court filing alleging that 鈥渃elebrities (are used) to dupe potential investors into trusting the financial opportunities鈥�.
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Celebrity Promo
Among the celebrities being legally implicated are former NBA player Paul Pierce who apparently took to Twitter in 2021 to share how EthereumMax had successfully made money for him.
Princess of reality TV, Kim Kardashian, allegedly posted on Instagram 鈥渟haring what (her) friends tell (her) about the EthereumMax token. Thanks to Kardashian鈥檚 incomparable reach on Social Media, the post speculating about crypto tokens was thought to have reached approximately 250 million followers.
Despite EthereumMax telling BBC News that their marketing efforts were purely to raise awareness rather than to explicitly encourage purchase, said publication from Kardashian caused the cryptocurrency to increase over 1,300% more than its initial value before falling to an 鈥渁ll time low鈥�.
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Denying Claims
EthereumMax has denied all claims and stated that the narrative surrounding the court case is 鈥渄eceptive鈥�. They also are keen to differentiate themselves from class 鈥減ump-and-dump schemes鈥�, claiming that all of EthereumMax鈥檚 PR efforts are thoughtfully planned and encourage investors to research the project before deciding to invest.
The celebrities implicated are yet to make statements as the investigation continues.
