various celebrities including Kim KardashianFormer NBA All-Star Paul Pierce, Boxer Floyd Mayweather Jr., is Being Prosecuted for His Role in an Alleged Role cryptocurrency a scam. These celebrities and the company Ethereummax are being accused of making misleading statements about the company’s digital tokens to the co-founders and others, according to a class action complaint from the Central District of California.
“Company executives, collaborating with a number of celebrity promoters, (a) made false or misleading statements to investors about EthereumMAX through social media advertisements and other promotional activities and (b) concealed their control over EthereumMAX and EMAX. A significant percentage of tokens that were available for public trading during the relevant period,” the complaint reads.
EthereumMax provides ERC-20 virtual tokens on the Ethereum network. According to CoinMarketCap, the ERC-20 was trading at $0.00000001961 on Tuesday morning. The lawsuit claimed that celebrities asked their million followers on social media to buy coins, only to sell when the price was high.
Last June, Kim Kardashian posted about the EthereumMax token to her over 250 million followers on Instagram. “Are you guys into crypto? This is not a financial advice, but just sharing what my friends told me about the Ethereum MAX token! A few minutes ago Ethereum MAX burned 400 trillion tokens – literally from their admin wallet 50 percent is giving back to the entire E-Max community,” she wrote.
On June 7, 2021, boxing legend Floyd Mayweather Jr. told the press after a fight with Logan Paul that he earned $30 million from sponsorships on his shorts. “My tights alone, just my tights, $30 million. With the patch on my tights, that’s $30 million,” Mayweather said. The patch of Mayweather’s shorts included the logo of the cryptocurrency EthereumMax, among others.
“.@espn I don’t need you. I got @ethereum_max I made more money with this crypto last month than I did with all of you in a year. TRUTH YOU FREE MY OWN BOSS http://EthereumMax. org see it for yourself,” Pierce posted on his Twitter account last May.
According to the filing, Ryan Hughrich filed a complaint on behalf of himself and others who bought EMAX tokens between May 14, 2021 and June 27, 2021 and lost money. However, he did not mention the amount he lost during that time.
“Promoter Defendant’s unfair promotional activities generated the trading volume necessary for all Defendants to offload their EMAX Tokens to unsuspecting investors. While Plaintiffs and class members were purchasing improperly promoted EMAX Tokens, Defendants were relevant to a substantial profit were, and used to be, able to sell their EMAX tokens during the period,” the complaint noted.
On the alleged cryptocurrency scam, a spokesperson for EthereumMax responded, “The misleading narrative surrounding the recent allegations is filled with misinformation.” According to various media reports, Kardashian, Mayweather and Pierce did not immediately respond to requests for comment.
crypto bubble?
Right after Kim Kardashian’s social media post on Ethereum Max, FCA President Charles Randall called the cryptocurrency “a speculative digital token created a month ago by unknown developers.” He was speaking at the Cambridge International Symposium on Economic Offenses. He also accused the influencers of refueling. “The Illusion of Quick Money”. “I cannot say whether this particular token [Ethereum Max] is a scam. But social media influencers are regularly paid by scammers to help pump and dump new tokens behind pure speculation. Some influential people promote coins that don’t exist at all,” he said.
Cryptocurrency markets are extremely volatile.
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