Floyd Mayweather and Kim Kardashian are being sued for allegedly misleading investors by promoting cryptocurrency tokens in a ‘pump and dump’ scam.
According to a lawsuit filed in federal court in Los Angeles on January 7, the reality star and boxer is said to have proclaimed tokens sold by EtheruemMax (known as EMAX) to raise prices.
Former NBA player Paul Pierce is also caught up in the allegations, with allegations that the parties involved earned “at the expense of their followers and investors”.
The value of the cryptocurrency fell in July, a few weeks after Kardashian and Mayweather promoted the brand on their respective social media sites.
In fact, ‘Money’ even carried branding for the currency on his shorts during his showdown with Logan Paul in Miami back in June, where up to 650,000 fans bought pay-per-view in the United States alone.
The lawsuit was filed by a New York resident who bought EMAX tokens and lost money – and is being proposed as a class action lawsuit, open to anyone who allegedly lost after buying tokens from mid-May to late June 2021 .
The complaint alleges: “Company executives who collaborated with several well-known promoters … made false or misleading statements about EthereumMax through social media ads and other promotional activities.”
It adds: “The promoter’s improper promotional activities generated the trading volume necessary for all defendants to transfer their EMAX tokens to unsuspecting investors.
“While Plaintiff and class members purchased the inappropriately promoted EMAX tokens, Defendants were able to and sold their EMAX tokens for the relevant period for a substantial profit.”
To make matters worse for Mayweather, Paul claims he has not yet been paid from their showdown, despite being reportedly guaranteed to earn $ 250,000 (£ 185,598.75) plus 10 per cent of all PPV sales, which would equate to approximately an additional $ 5,000,000 (£ 3,711,975).
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