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Kim Kardashian Faces Advancement of Lawsuit over Alleged Cryptocurrency Hype Scam

Kim Kardashian Faces Advancement of Lawsuit over Alleged Cryptocurrency Hype Scam

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TL;DR

  • Kim Kardashian’s attempt to dismiss a lawsuit accusing her of falsely hyping EthereumMax (EMAX) cryptocurrency has been rejected by a judge.
  • Investors can revise their allegations of paying inflated prices for EMAX tokens, while Floyd Mayweather Jr. receives a partial victory but still faces claims related to undisclosed paid promotion.

[Date], [City]: A recent legal battle involving renowned celebrity Kim Kardashian and the controversial cryptocurrency EthereumMax (EMAX) has taken a significant turn, as US District Judge Michael Fitzgerald rejected Kardashian’s motion to dismiss a lawsuit filed against her. The lawsuit alleges that Kardashian engaged in deceptive practices by falsely promoting EMAX tokens, leading investors to pay inflated prices for the digital assets. While boxer Floyd Mayweather Jr., also named in the lawsuit, received a more favorable ruling from the judge, investors are now granted an opportunity to revise and refile their allegations against him for failing to disclose his paid promotion of EMAX.

Kardashian’s Failed Dismissal Motion Highlights Alleged False Advertising

Kim Kardashian’s legal team’s attempt to have the lawsuit dismissed has been met with disappointment, as Judge Fitzgerald ruled against their arguments. The investors’ claims assert that Kardashian misled them through her social media posts, wherein she hyped EMAX tokens and claimed they would be accepted as payment for table reservations at certain nightclubs. 

The judge found that the investors adequately demonstrated that Kardashian’s posts were “literally false” and that her suggestion of EMAX tokens being scarce was misleading. This ruling signifies a significant advancement for the investors’ case against Kardashian, who had previously settled with the US Securities and Exchange Commission (SEC) for alleged violations related to EMAX promotion.

Mayweather Receives Partial Reprieve, Disclosure Claims to Be Reviewed

In contrast to Kardashian, Floyd Mayweather Jr. achieved a partial victory in the legal proceedings. Judge Fitzgerald concluded that Mayweather’s public statements about the growth prospects of EMAX tokens, made during a 2021 Bitcoin conference, amounted to “quintessential nonactionable puffery.” Consequently, Mayweather cannot be sued for expressing his belief in the future potential of EMAX. 

However, the judge granted investors the opportunity to revise and refile their claims against Mayweather, specifically focusing on the allegation that he failed to disclose his financial compensation for promoting EMAX. This aspect will be further examined in the revised lawsuit.

A Chance for Investors to Seek Recourse, Other Defendants Named

The lawsuit not only targets celebrity promoters such as Kim Kardashian and Floyd Mayweather Jr. but also includes several EMAX co-founders and consultants as defendants. Investors, who claim to have paid inflated prices for EMAX tokens, now have the opportunity to amend and resubmit their allegations against all parties involved. Judge Fitzgerald acknowledged that the investors’ legal team addressed previous deficiencies in their complaint, stating that they “artfully cured” certain aspects of the case. However, the judge cautioned that any remaining shortcomings should be addressed in the revised complaint, as failure to do so may result in the permanent dismissal of those claims.

The investors in the lawsuit have the chance to seek recourse not only against celebrity promoters like Kim Kardashian and Floyd Mayweather Jr. but also against EMAX co-founders and consultants. They can amend and resubmit their allegations, addressing any remaining shortcomings in the revised complaint to avoid permanent dismissal of those claims.

Conclusion 

The legal battle between investors and celebrity promoters of EthereumMax, including Kim Kardashian and Floyd Mayweather Jr., continues to progress as the lawsuit advances. While Kardashian’s attempt to dismiss the case was rejected by Judge Fitzgerald, Mayweather obtained partial relief from certain claims. Investors have been granted the opportunity to revise their allegations, focusing on the disclosure of financial compensation for promoting EMAX. As this high-profile lawsuit unfolds, it underscores the importance of transparency and accountability within the cryptocurrency industry, particularly concerning celebrity endorsements and investor protection.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Haseeb Shaheen

As a Web Researcher and Internet Marketer, Haseeb Shaheen delivers relevant valuable content for audiences. He focuses on financial and crypto market analysis, as well as technology-related areas that help people change their lives.

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