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Popular American reality TV star Kim Kardashian and boxing legend Floyd Mayweather Jr. have been slapped with a lawsuit as the celebrities misled investors by promoting a cryptocurrency token.
The lawsuit, filed in Los Angeles federal court on 7th January 2022, claims the celebrities thrown their weight behind tokens being sold by EthereumMax, or EMAX, to boost its value and make themselves a profit at the expense of their followers of the celebrities 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,” part of the lawsuit stated.
The lawsuit says Kardashian promoted EthereumMax in a June 2021as she posted it on her Instagram page with over 250 million followers.
“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 also promoted EthereumMax on his boxing trunks during a fight with YouTube star Logan Paul which was widely viewed by many people in June, among other times.
Meanwhile, Representatives for the celebrities did not immediately respond to requests for comment.
EthereumMax, the company, was also named in the lawsuit.
“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.”