Kim Kardashian and Floyd Mayweather Jr. came out victorious in the investor lawsuit for their role in promoting cryptocurrency.
Here is everything you need to know.
Federal judge dismisses crypto scam lawsuit against Kim Kardashian and others
A federal judge dismissed a lawsuit against Kim Kardashian, Floyd Mayweather Jr., and others on Wednesday.
If you didn’t know, the reality television star and the boxing legend were sued for promoting a cryptocurrency, EthereumMax.
However, a Los Angeles-based judge recently ruled out that it remains unclear whether the promotions were actually seen by the investors, who filed the lawsuit, or not.
Meanwhile, the investors, who bought EMAX tokens, claim that they faced losses after taking the word of celebrity endorsers over the crypto value.
Moreover, the lawsuit alleged that the defendants were connected to a conspiracy. They allegedly tried to artificially inflate EMAX tokens’ value.
Judge Michael Fitzgerald on the other hand issued that the investors can amend and refile their proposed class action.
In addition, he wrote that the lawsuit is raising legitimate worries over celebrities’ abilities to persuade their followers to buy nonsensical products.
He added, ‘But, while the law certainly places limits on those advertisers, it also expects investors to act reasonably before basing their bets on the zeitgeist of the moment.’
Besides that, he dismissed the investors’ claim under the consumer protection law of California.
According to Fitzgerald, the rule is only applicable to tangible goods and services and not ‘intangible goods’ like cryptocurrency.
More about Kim Kardashian and Floyd Mayweather Jr.’s investor lawsuit
Kim Kardashian took to her Instagram account in June 2022 to share an advertisement. She shared about EthereumMax with her 250 million followers.
She wrote, ‘Are you guys into crypto???? This is not financial advice but sharing what my friends just told me about the Ethereum Max token!’
The Keeping Up with the Kardashians alum further said, ‘A few minutes ago Ethereum Max burned 400 trillion tokens—literally 50% of their admin wallet, giving back to the entire e-max community. Swipe up to join the e-max community.’
Besides that, the judge’s decision came two months after Kardashian agreed to pay $1.26 million to settle claims by the SEC. Moreover, she is barred from promoting cryptocurrency for three years.
Regardless, Floyd Mayweather Jr. promoted the cryptocurrency during a boxing match. The event was also a conference for bitcoin in Miami in June 2021.
However, by early 2022, EMAX had already lost 97% of its value.