The Legal Tangle of a Celebrity Crypto Scandal
In a twist that sounds like a plot straight out of a soap opera, Kim Kardashian and her legal team are taking a stand against a class-action lawsuit that claims she misled investors through her promotion of the cryptocurrency EthereumMax (EMAX). The legal action was originally filed in January 2022, and it’s shaping up to be quite the show, with Kardashian sharing the stage with other heavyweights like Floyd Mayweather.
‘Influential’ Promotions Gone Awry
Back in June 2021, Kardashian leveraged her social media prowess to promote EMAX via Instagram Story, which captured the attention of fans and investors alike. Around the same time, Mayweather was busy promoting EMAX in anticipation of his celebrity boxing match against YouTube sensation Logan Paul. The hype was real — and so were the wallets opening. Unfortunately, the dream quickly turned into a nightmare as the value of EthereumMax plummeted, leaving many investors nursing their financial wounds.
The Accusations Unveiled
The lawsuit, which initially grouped Kardashian with several other celebrity influencers, claimed that they misrepresented their control over EMAX tokens and had misled fans with rosy projections of the token’s potential. According to the original court filing, co-founders Steve Gentile and Giovanni Perone collaborated with these celebrity promoters to make false claims. Image these lawyers trying to track down the origins of social media posts like it’s a crime scene!
Kardashian’s Legal Response
Don’t count the Queen of Social Media out just yet! Kardashian’s legal eagles have fired back, asking the court to dismiss the claims against her. They argue that none of the plaintiffs have proven they even saw Kardashian’s Instagram posts before they decided to dive into the crypto pool. That’s like blaming your favorite chef for you burning dinner because you didn’t consider the recipe!
Moreover, Kardashian’s representatives insisted that there is no evidence showing that she was ever financially compensated for those posts or even engaged in any trading of EMAX tokens herself. They’ve pulled out the big guns, filing an omnibus motion to have the entire class-action scooted out of court.
Celebrity Promotions: A Rocky Road
This isn’t Kardashian’s first brush with crypto controversy, and Mayweather isn’t exactly a stranger to legislative labyrinths either. Remember Centra Tech? Back in 2017, the boxer faced a lawsuit over promoting a cryptocurrency that was later deemed fraudulent, alongside DJ Khaled. They managed to wriggle free when a judge ruled that investors couldn’t prove their decisions to buy had been influenced by the boxer or the producer. It seems that celebrity promos come with their own set of risks — not to mention bewildering legal battles!
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