A lawsuit claims that reality TV star Kim Kardashian and boxing icon Floyd Mayweather Jr. misled investors in their promotion of a cryptocurrency token.

The case, filed in federal court in Los Angeles on January 7, claims that the celebrities promoted EthereumMax, or EMAX, tokens in order to enhance their price and profit ‘at the expense of their fans and investors.’

"The company's executives, collaborating with several celebrity promoters ... made false or misleading statements about EthereumMax through social media advertisements and other promotional activities," the lawsuit stated.

Kardashian endorsed EthereumMax in a June 2021 Instagram post, when she had 250 million followers, according to the lawsuit.

'Are you guys into crypto?' she wrote in the post, followed by the disclaimer 'this is not financial advice', but that she wanted to share 'what my friends just told me' about the EthereumMax tokens. She included the #AD hashtag to show the post was a paid advertisement, the lawsuit said.

Mayweather wore EthereumMax on his boxing trunks during a high-profile battle with YouTube sensation Logan Paul in June, among other instances.

Requests for a response from Kardashian and Mayweather's representatives were not immediately returned.

The company, EthereumMax, was also mentioned in the suit.

"The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project," EthereumMax said in a statement. "We dispute the allegations and look forward to the truth coming out."

The complaint, which was filed by a New York citizen who lost money after purchasing EMAX tokens, is being presented as a class-action suit for everyone who purchased EMAX tokens between mid-May and late-June 2021.

The defendants are being sued for reparations and profit disgorgement.

Kim Kardashian, Floyd Mayweather Sued Over Promotion of Crypto Token

A lawsuit claims that reality TV star Kim Kardashian and boxing icon Floyd Mayweather Jr. misled investors in their promotion of a cryptocurrency token.

Prabhjeet Bhatla is a cryptocurrency writer covering startups and a researcher since 2020. She has authored many articles for Entrepreneur India and APAC (digital and print) on cryptocurrency and ever-evolving Blockchain, the technology behind Bitcoin, and other cryptocurrencies. She specializes in applied cryptography, privacy-enhanced information storage systems, anonymous cryptocurrencies, elliptic curve crypto-systems, and satellite television piracy.

Kim Kardashian, Floyd Mayweather Sued Over Promotion of Crypto Token

Top Picks