Multiple celebrities could be in big trouble for their alleged involvement in a cryptocurrency scam.
The class action lawsuit, which was filed in California federal court on Friday, accuses the celebrities of colluding with EthereumMax co-founders Steve Gentile and Giovanni Perone.
The founders allegedly organized a pump-and-dump scheme with these stars, “causing investors to purchase these losing investments at inflated prices.” Essentially, this lawsuit accuses the celebrities of promoting worthless tokens to their millions of followers and violating state consumer protection laws.
The complaint reads:
“The Company’s executives, collaborating with several celebrity promotors, (a) made false or misleading statements to investors about EthereumMax through social media advertisements and other promotional activities and (b) disguised their control over EthereumMax and a significant percent of the EMAX Tokens that were available for public trading during the Relevant Period.”
In June 2021, Kim Kardashian took a break from her usual content to promote EthereumMax to her 250 million followers on Instagram.
“Are you guys into crypto????” Kim wrote on her Instagram Story at the time. “This is not financial advice but sharing what my friends just told me about the Ethereum Max token! A few minutes ago Ethereum Max burned 400 trillion tokens—literally 50% of their admin wallet giving back to the entire E-Max community.”
She then added a swipe up link to “join the E-Max community.”
Shortly after Kardashian’s post, the price of the token shot up more than 1,370%. But, since then, the price has dropped nearly 98%.
A month prior to the reality star’s post, Paul Pierce promoted the same tokens amid a dispute with his former employer, ESPN. As for Floyd Mayweather’s involvement, he wore trunks featuring an advertisement for EthereumMax during his exhibition boxing match against Logan Paul in June.
For now, none of these starts have commented on the lawsuit.