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EthereumMax has declined about 97% between early June and now, making some investors tag it as a typical “pump and dump” scheme.
American socialite Kim Kardashian and professional boxer Floyd Mayweather are currently facing lawsuits over an alleged crypto scam. Crypto investors sued Kardashian and Mayweather for promoting a crypto asset, EthereumMax, which appears to be a “pump and dump” scheme. The class action accuses the celebrities of artificially inflating the crypto’s price.
Kim Kardashian and Mayweather Face Lawsuit for Promoting EthereumMax Crypto
The American celebrities promoted EthereumMax on social media, influencing their millions of social media followers. Now, the investors claim that Kardashian and Mayweather misled them while promoting the said crypto asset. Last week, a class action was filed in the US District Court for the Central District of California. The lawsuit accuses the crypto and both celebrity promoters- Kardashian and Mayweather.
According to the case, the promoters worked together with EthereumMax to artificially inflate the asset’s price. The accusation says that the influencers achieved artificial inflation by making “false or misleading statements” on their social media posts.
Last year, Kardashian posted about EthereumMax on her Instagram, attracting the attention of her 278 million followers. This came when crypto was becoming more mainstream, with several celebrities talking about adopting crypto. In the Instagram promotion post, Kardashian wrote:
“Are you guys into crypto???? This is not financial advice but sharing what my friends just told me about the Ethereum Max token.”
The socialite added the #ad hashtag in the post, suggesting that she was paid to promote the cryptocurrency.
On the other hand, Mayweather promoted EthereumMax in his boxing match with Logan Paul. According to the lawsuit, fans were able to pay for the event tickets with the crypto, which fueled trading volumes. Also, the athlete was advocating for EthereumMax at the Bitcoin 2021 conference held in Miami. Despite that it was a Bitcoin-only event, Mayweather and his team wore branded EthereumMax t-shirts, and the celebrity went further in downplaying the importance of BTC.
Blaming the celebrities actions, the lawsuit said that plaintiff Ryan Huegerich and other investors who bought EthereumMax had lost their investments. The filing noted that the investors purchased the tokes between the 14th of May 2012 and the 17th of June in the same year.
Investors Tag EthereumMax as ‘Pump and Dump’ Scheme
EthereumMax has declined about 97% between early June and now, making some investors tag it as a typical “pump and dump” scheme. Furthermore, the lawsuit stated that EthereumMax “has no connection” with Ether. The litigation claims that the token branding is misleading innocent investors into believing that EthereumMax is related to the Ethereum network.
However, a spokesperson for the EthereumMax project has denied the accusation that the crypto is a scam. According to the spokesperson, the lawsuit was “riddled with misinformation.” The representative added:
“This project has prided itself on being one of the most transparent and communicative projects in the cryptocurrency space. We dispute the allegations and look forward to the truth coming out.”
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