The stars have been promoting cryptocurrencies.
Kim Kardashian, boxer Floyd Mayweather- junior, former participant of the NBA All-Star Game Paul Pierce and other celebrities in the United States are on trial for allegedly involving investors in cryptocurrency fraud, reports the Chronicle.info with reference to Channel 24.
York-based Ryan Hugerich bought EMAX (EthereumMax) tokens and lost money. Now, along with other investors who bought this token between May 14 and June 27, 2021, he is suing the founders of EthereumMax and the stars that advertised it.
The class-action lawsuit against the stars alleges «false or deceptive statements received by EthereumMax investors through social media ads and other promotional activities». According to the plaintiffs, the stars urged millions of their followers to buy cryptocurrency in order to sell it when the price is inflated.
EthereumMax is a speculative digital token created by a mysterious group of cryptocurrency developers,
says the lawsuit.
How the stars advertised EthereumMax
- Boxer Mayweather committed to the boxing match wearing Ethereum Max logo shorts.
- Former NBA player and sportscaster Paul Pierce promoted EthereumMax on his twitter. «.@espn I don't need you. I got @ethereum_max, I made more money with this cryptocurrency in the last month than I did with you in a year», wrote Pierce.
- Kardashian promoted cryptocurrency on Instagram, where she has 278 million followers. «Are you interested in cryptocurrency? This is not financial advice, but I'm sharing what my friend told me about the Ethereum Max token!», the star's post began.
Kardashian's post was criticized by the UK Financial Conduct Authority , noting that it could have been the financial ad with the highest reach in history.
I can't tell if this particular token is a scam. But scammers usually pay influencers to help them pump and dump new tokens based on pure speculation. Some stars advertise coins that simply don't exist.
Charles Randell, Head of the UK Financial Comptroller.