May 26, 2022

Your favorite celebrities are, one by one, answering to the call of crypto, but that doesn’t mean you should always listen, or that they aren’t going to get in trouble. In a lawsuit filed last week, a host of big name stars, including Kim Kardashian, Floyd Mayweather Jr., and Paul Pierce, have been sued over their promotion of a cryptocurrency known as EthereumMax.

The suit alleges that a number of celebrities used their large online followings to promote “false or misleading information” while advertising what was “a speculative digital token created by a mysterious group of cryptocurrency developers.” In his highly publicized fight with Logan Paul, Mayweather wore a pair of boxing trunks sponsored by EthereumMax.org; Pierce boosted the coin on Twitter, claiming he made more money off of it than he did with ESPN amid a dispute with the sports network; and Kardashian posted on Instagram telling her followers to join the “Ethereum Max community.”

Cliff Hawkins/Getty Images Sport/Getty Images

The endorsements were part of what the suit, which also includes the founders of EthereumMax as defendants, claims was essentially a “pump and dump scam,” in which the celebrities used their online influence to lure people into buying and inflating the dubious coin, before selling their shares after the price spiked. It also takes issue with the coin’s misleading name: “EthereumMax has no connection to the second-largest cryptocurrency, Ethereum,” a footnote in…

Read more…

Leave a Reply

Your email address will not be published.