News circulating is that American socialite, Kim Kardashian alongside boxer, Floyd Mayweather Jr., with basketball hall of famer, Paul Pierce, and the Ethereum Max cofounders are being sued by an investor.
According to papers filed on January 7, the above public figures were named for reportedly conniving to promote the crypto last spring in a pump-and-dump scheme.
Ryan Huegerich, the investor, has brought the federal suit in the Central District of California as a class action “on behalf of all investors who purchased EthereumMax tokens (“EMAX Tokens”) between May 14 to June 27, 2021, and were damaged thereby.” He is searching for shareholders who will join the class.
On 14th June, 2021, Kardashian advertised the freshly launched coin to her then-228 million Instagram followers. On that day, trading volume rose by about 35% to US$30 million. However, according to CoinmarketCap, the price dropped by 17% from US$0.00000023.
In May, both Pierce and Mayweather promoted EMAX. According to the suit, the three public figures were paid tokens or cash for their promotions. As of today, EthereumMax price has dropped by 98% from its peak.
Influencers and celebrities have gotten themselves into trouble with the U.S. Securities and Exchange Commission for advertising cryptocurrency. These include both DJ Khaled and Mayweather who paid penalties and fines of US$767,500 back in 2018.
At the beginning of this year, Elon Musk talked about the rumors that the Securities and Exchange Commission were investigating him in relation to his tweets admiring Dogecoin. “I hope they do! It would be awesome,” Musk tweeted.
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Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.