picture released, Getty Images
Investors have sued reality TV star Kim Kardashian, accusing her and two other personalities of fraud and misrepresentation.
The lawsuit relates to speculation in the cryptocurrency market, and was filed in a California court against: Kardashian, boxer Floyd Mayweather Jr., basketball player Paul Pierce, as well as a company offering a digital currency called Ethereum Max.
The lawsuit said the defendants “misleadingly promoted and sold” to their followers Ethereum Max.
The company’s chief executives have denied the accusations, saying they are looking forward to the truth.
Despite the similarity of the two names, there is no legal or financial link between Ethereum Max (the new digital currency) and Ethereum (the famous in the cryptocurrency community).
investment loss
The lawsuit alleges that Ethereum Max committed a “fraud” of misleadingly inflating the stock’s market price before selling it to investors for profit.
“The Company, in conjunction with a number of celebrities, has promoted false or misleading statements to investors about Ethereum Max through social media advertisements and other promotional activities,” says the lawsuit, which was filed in California’s Central District Court.
The defendants lured investors with the potential to make big profits, and as a result investors bought cryptocurrency – this buying rush in turn raises the price of the currency, at which point the owners sell it at a higher price and profit as a result.
Ethereum Max has relied on popular celebrities to promote the new digital currency among potential investors.
bout
The lawsuit alleges that former NBA star Paul Pierce promoted Ethereum Max via a lengthy post on his Twitter page in May 2021.
Pierce claimed that Ethereum Max helped him make a profit.
At the same time, Ethereum Max has started using former world boxing champion Floyd Mayweather Jr. to promote the coin on YouTube in collaboration with famous American blogger Logan Paul.
It is reported that Mayweather was also promoting Ethereum Max at a cryptocurrency conference.
Finally, reality TV star Kim Kardashian participated in the promotion of the Ethereum Max coin, through a post on her Instagram page, where Kardashian has a following of about 250 million fans.
“This is not financial advice, but rather a sharing of what friends have been telling me about the Ethereum Max cryptocurrency,” Kardashian wrote.
For its part, the Financial Conduct Authority in the United Kingdom, through its president, Charles Randall, said that Kardashian “asked her 250 million followers to speculate with a digital currency.”
The British authority considered that this post by Kardashian – which was tagged with an advertisement – may be “the financial promotion that reaches the largest number of followers of a single character in history”.
The lowest level ever
Ethereum Max said its marketing and PR efforts “always come from an introduction rather than an inducement to buy – so Kardashian’s Instagram post was simply meant to introduce the project and its benefits.”
“Our goal is for our marketing and PR efforts to get people to research our project…before making a decision,” Ethereum Max told the BBC.
“This approach required a lot of time, effort, and resources – the exact opposite of what happens in fraud cases,” the company continued.
However, this promotion contributed to an increase in the value of Ethereum Max by more than 1,300 percent over its initial value, before it plunged to its lowest level ever one month after Kardashian’s post.
During the rise in the value of Ethereum Max, the company reaped huge profits from the buying spree from investors, who then lost a lot.
The lawsuit named and inflicted damages on Ethereum Max speculators between May 14 and June 27 – “claimants”.
For its part, Ethereum Max denied the claim.
“The misleading narrative accompanying the recent lawsuits is riddled with misinformation about the Ethereum Max project,” said Steve Gentile, who is named in the lawsuit as a “co-founder of Ethereum Max.”
“We deny what was stated in the lawsuit, and we look forward to the truth emerging,” Gentile told the BBC.
The BBC is reaching out to Kardashian, Mayweather and Pierce for comment.
These were the details of the news Kim Kardashian: Cryptocurrency “fraud” lawsuit against reality TV star for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.
