Celebrities, including boxer Floyd Mayweather Jr., Kim Kardashian and former NBA star Paul Pierce, have been charged with “pumping and dumping” cryptocurrency fraud.
As California Central District Class Action Complaint, The celebrities listed and Ethereum Max are accused of making false statements about the digital tokens offered by the company.
“The company’s executives, in collaboration with a number of well-known advertisers, have given false or misleading information to investors about EthereumMax through social media ads and other promotional activities and (b) have demonstrated their control over EthereumMax and a significant percentage of EMAX Tokens available to the public at the right time.” ”Reads the complaint.
EthereumMax is a company that offers ERC-20 tokens At ethereum ETHUSD,
Network, according to the website. According to CoinMarketCap, EthereumMax tokens are worth $ 0.00000001961 on Tuesday morning.
Mayweather He introduced Ethereum Max to the trunks during an exhibition boxing match against Logan Paul in 2021. Mayweather claims to have received a total of $ 30 million for advertising during the campaign.
Kardashian Ethereum Max showed more than 250 million followers on Instagram FB last June.
And Pierce tweeted on Twitter last month, “How much money did he get from EthereumMax?”
Account last May.
“The defendants of the advertisers were involved in inappropriate advertising activities
The amount of transaction required for all defendants to withdraw their EMAX tokens
Against unsuspecting investors. Plaintiff and Class Members While Purchasing
EMAX Tokens Unfairly High, Defendants Sell, and Sell
Their Imax tokens for real profit in a timely manner. ”
Ethereum Max’s spokesman told MarketWatch that the lawsuit was part of a “misleading narrative” about the company and that those who worked on the project last year are now different from those involved. Representatives of Kardashian, Mayweather and Pierce did not respond to a request from MarketWatch for comment.
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“During my years representing athletes and celebrities, I encourage them to be sure that in any contract, beyond the legal language, they will always have a genuine relationship with the product or service they support,” Darren Hetner, a professor of sports law at the University of Florida, told MarketWatch in an email. “It does not matter if a person has a negative relationship with a brand, especially if that person has a lot of money in his / her business. That is what makes EthereumMax so worrying.
“Floyd Mayweather, Kim Kardashian and Paul Pierce took this opportunity for a payday and nothing more. Hethner continued.
Cardedian Post time during a visit by Ethereum Max, Head of the Financial Conduct Authority of the United Kingdom (FSA) Charles Randel warns that EthereumMax is a speculative digital signal Created by unknown developers a month ago. He continued Blaming influencers Ignoring the “instantaneous deception” associated with cryptography.
Cryptocurrency markets can be very volatile and it is important to make informed financial decisions when dealing with crypto. Monday and Crypto prices are trending lower and bitcoin BTCUSD,
For the first time since September, prices have fallen below $ key price for a short period of $ 40,000.
Read: Kathy Wood is waiting for a ‘blood bath’ in this marketplace.
“It seems easy to persuade people to invest in cryptocurrency projects in particular, which makes it even more important for athletes and celebrities to take precautions in these forums before they meet with the companies and to do whatever they can. It’s connected. ”