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Kim Kardashian, Floyd Mayweather, and Paul Pierce are facing a federal lawsuit that alleges they deceived investors in a pump-and-dump cryptocurrency scam.
The lawsuit accuses executives at #EthereumMax of collaborating with the celebs to urge fans to buy the coins. The celebs were reportedly paid in tokens for their endorsement. The cryptocurrency crashed, but not before its creators made a lot of money.
The lawsuit filed Friday in California claims the EMAX creators inflated the coin’s value before selling off their shares, making large sums of money. At the same time, investors were left with nothing once it crashed.
“Defendants touted the prospects of the Company and the ability for investors to make significant returns due to the favorable ‘tokenomics’ of the EMAX Tokens,” the lawsuit reads. “In truth, Defendants marketed the EMAX Tokens to investors so that they could sell their portion of the Float for a profit.”
In June, Kardashian promoted EthereumMax in an Instagram post.
“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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