1. Kim Kardashian, Floyd Mayweather and other celebrities are attempting to convince a judge to dismiss an attempt to hold them liable for promoting EthereumMax (EMAX) without proper disclosure.
2. The investors’ class-action lawsuit accuses the EthereumMax team of working with celebrities to sell EMAX tokens in a “pump-and-dump” scheme.
3. Kardashian has already been fined once because of EthereumMax promotions on social media, reaching a $1.26 million settlement with the United States Securities and Exchange Commission (SEC).
Kim Kardashian & Floyd Mayweather File Motion To Dismiss Crypto Promotions Lawsuit
Kim Kardashian, Floyd Mayweather and other celebrities are looking to convince a judge to dismiss another revised attempt to hold them liable for allegedly promoting EthereumMax (EMAX) without proper disclosure.
Investors Push Forward Same Theory Rejected by Court
The investors’ class-action lawsuit runs on the premise that the EthereumMax team worked with the celebrities to sell EMAX tokens in what they describe as a “pump-and-dump” scheme. However, the defendant’s motion to dismiss the renewed complaint argues that the theory revolving around celebrities advertising the EMAX tokens to pump its price artificially was already rejected by the court since the tokens do not have any value apart from what the market is willing to pay for.
Kardashian Settles With SEC Over Alleged Misrepresentations
Kardashian has already been fined once because of EthereumMax promotions on social media. On Oct. 3, 2022, she reached a $1.26 million settlement with the United States Securities and Exchange Commission (SEC) after failing to disclose that she received a $250,000 payment to promote the crypto project.
SEC Issues Warning To Celebrities Promoting Crypto
The SEC has recently issued a warning to celebrities who promote crypto. On Feb. 17, it reminded stars that they must disclose how much they were paid when endorsing investments.
Defendants Ask Judge To Dismiss Renewed Complaint
The defendants asked a California federal judge to dismiss a second amended complaint from EthereumMax investors filed in December 2022 pointing out thatthe renewed allegations push forwardthe same theorythe court had previously rejected.