Kim Kardashian & Floyd Mayweather Sued Over Cryptocurrency Scam

Kim Kardashian and her family have recently been involved in several controversies. The Kardashian-Jenners are still dealing with the Blac Chyna case. Another case has emerged, one with Kim Kardashian and Floyd Mayweather getting sued by investors for alleged crypto fraud.

According to CNBC, Kim Kardashian and Floyd Mayweather are being sued on charges that they deceived investors by pushing EthereumMax to their millions of social media followers. In a class action complaint filed last Friday in the United States District Court for the Central District of California, EthereumMax and its celebrity boosters are accused of conspiring to fraudulently inflate the token’s price by making “false or deceptive assertions” in social media posts.

Kardashian made headlines last year when she shared an Instagram post advocating the EthereumMax cryptocurrency. Kardashian used the hashtag #ad in her post, implying that she was paid to promote it. It’s unclear how much Kardashian was paid by EthereumMax, but estimates put her price per sponsored Instagram post between $500,000 and $1 million.

“Are you guys into crypto????. This is not financial advice but sharing what my friends just told me about the Ethereum Max token!”

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Meanwhile, Mayweather supported the token during his boxing battle against YouTube sensation Logan Paul. The complaint says that EthereumMax was accepted as payment for event tickets, which significantly increased trading volumes. Mayweather also pushed EthereumMax at a large bitcoin conference in Miami and was booed off stage as a result. According to the complaint, Mayweather does not appear to have disclosed remuneration for his marketing of the cryptocurrency.

Plaintiff Ryan Huegerich, a New York citizen, and other investors who acquired EthereumMax tokens between May 14, 2021, and June 17, 2021, according to the complaint, experienced damages as a result of the celebrities’ actions. Since early June, EthereumMax has lost almost 97 percent of its value, prompting some investors to term it a “pump and dump” operation in which scammers seek to inflate the price of an asset by false or deceptive promises.

The claim is included in Huegerich’s complaint, which accuses Kardashian and Mayweather of “shilling” for EthereumMax. According to the complaint, EthereumMax “has no link” to ether, the second-largest cryptocurrency, and its branding appears to be an attempt to deceive investors into believing the token is part of the Ethereum network.

When CNBC reached out to Kardashian and Mayweather’s representatives, neither was immediately accessible. A representative for the EthereumMax project denied perpetrating a fraud, claiming the complaint was “riddled with misinformation.”

“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.”

This isn’t the first time celebrities have gotten into trouble for promoting cryptocurrencies. Kim has a lot going on in her life. Let’s see how things turn out for her. Keep an eye on Thirsty for further updates.

What’s your opinion on this one? Let us know in the comments!