Celebrities sued over crypto promotion

Kim Kardashion, Floyd Mayweather Jr, and Paul Pierce, are being sued alongside executives from EthereumMax over ‘misleading’ promotion of the company’s cryptocurrency.

The lawsuit has been filed by investors who purchased ‘EMAX Tokens’ between 14 May and 27 June 2021.

The class action document states that the case arises from a “scheme among various individuals in the cryptocurrency sector to misleadingly promote and sell the digital asset associated with EthereumMax (the EMAX Tokens) to unsuspecting investors”.

It alleges that the company’s executives – Steve Gentile, Giovanni Perone, and Justin French – whilst collaborating with several celebrity promotors made false or misleading statements to investors about EthereumMax through social media advertisements and other promotional activities and disguised their control over EthereumMax and a significant per cent of the EMAX Tokens that were available for public trading during the relevant ‘float’ period.

According to the lawsuit, the defendants “touted the prospects of the company” and the ability for investors to make significant returns due to the favourable “tokenomics” of the EMAX Tokens. In truth, it says, they marketed the Tokens to investors so that they could sell their portion of the float for a profit.

“The misleading promotions and celebrity endorsements were able to artificially increase the interest in and price of the EMAX Tokens during the Relevant Period, causing investors to purchase these losing investments at inflated prices,” claims the document.

“The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project,” wrote the company on Twitter. “We dispute the allegations & look forward to the truth coming out. Thank you #EMAX community for all of your ongoing support.”

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