A federal judge dismissed a lawsuit against Kim Kardshian and Floyd Mayweather Jr. Wednesday over their alleged roles in a criptocurrency scheme.
Among the celebrities involved in the promotion ofEthereumMax EMAX were Paul Pierce, a boxing legend and retired basketball player.
Michael Rhodes, the lead counsel to Kim Kardashian, told FOX Business that they are pleased with the court's well-reasoned ruling.
The class-action suit filed in January alleges celebrity promoters made false or misleading statements to investors aboutEthereumMax through social media advertisements and other promotional activities. EMax co-founders were included in the class action complaint, which said thatEthereumMax was a speculative digital token created by a mysterious group of developers. The lawsuit was dismissed, but the U.S. District Judge Michael Fitzgerald said that the EMax investors could amend their suit and refile the proposed class action.
In October, the Keeping Up with the Kardashians star paid $1.26 million to the U.S. Securities and Exchange Commission for her failure to disclose she was paid $250,000 for a social media post about the EMax token.
The post on her Instagram story from June 2021 stated that it was from June 2021. This is not financial advice, but sharing what my friends have told me about the Ethereum Max token!
A few minutes ago, Ethereum Max burns 400 trillion tokens - almost 50% of their admin wallet giving back to the entire E-Max community. Mayweather promoted the company during a 2021 boxing match with Logan Paul. Pierce posted his EthereumMax promos on Twitter while he was talking about his grievances with ESPN.
I don't need you, espn. I made more money with ethereum max in the past month than with sic I did with y all in a year, Pierce tweeted.
Kardashian, who just launched her own private equity firm, is not the first celebrity to be disciplined by the SEC.
In 2018, both Mayweather and music producer DJ Khaled were charged with failing to disclose how much they were each paid to promote investments in initial coin offerings.
Neither Mayweather nor Khaled refuted the charges but agreed to pay fines that totaled $767,500.