Reality TV star Kim Kardashian and boxing legend Floyd Mayweather Jr have reportedly won an expected court ruling in a class-action lawsuit involving the Ethereummax token. Investors have accused celebrities of hyping Ethereummax and pumping EMAX crypto tokens.
The Judge’s Expected View
U.S. District Judge Michael Fitzgerald made his “expected position” Monday in a class-action lawsuit filed in January against Kim Kardashian and Floyd Mayweather Jr. about their promotion of the Ethereummax token, Bloomberg reported on Tuesday. Former NBA star Paul Pierce is also a defendant in the proposed class action.
The lawsuit alleges the reality TV star and former boxing champion defrauded investors by inflating the Ethereummax token, prompting investors to buy EMAX at “inflated prices”. The plaintiffs detailed that the token’s price jumped 1,370% shortly after its launch last May but then hit an all-time low in July – “a 98% drop from which it hasn’t been. recoverable”.
In a written order Monday, Judge Fitzgerald explained that attorneys representing investors are “trying to act like” the U.S. Securities and Exchange Commission (SEC), the publication. said. He added that they “did not choose to view the tokens as a security” and did not issue a standard securities fraud claim in their case. Fitzgerald also noted that celebrities are not “interested in labeling tokens as a security object for obvious reasons.” The judge said he would give the final order in writing later.
Kardashian recently settled with the SEC
The SEC charged Kardashian on October 3 “for promoting on social media a crypto asset security offered and sold by Ethereummax without disclosing the payment she received for the promotion.” fox”. Securities regulator details at the time:
The SEC order shows that Kardashian failed to disclose that she was paid $250,000 to publish a post on her Instagram account about the EMAX token, the crypto asset security powered by Ethereummax.
The SEC noted that neither admitting nor denying her findings, Kardashian “agreed to pay $1.6 million, including approximately $260,000 in compensatory damages, representing promotional payments by the company.” her, plus interest and a $1,000,000 penalty.” She also agreed to “not advertise any crypto-asset securities for three years.”