The reality TV star pushed an obscure token, EMAX, based on Ethereum on Instagram last year – and she is now being sued for it.
Remember EthereumMax, that cryptocurrency briefly touted by a handful of wealthy celebrities and athletes? Well, at least nine investors certainly remember that, and they’re seeking revenge against those celebrities, including Kim Kardashian, in a class action lawsuit.
Reality TV star Kim Kardashian is still battling the lawsuit, which claims she promoted a token”pump and dump“. On Friday, her attorneys filed a motion in a California district court seeking to have the lawsuit against her dismissed.
The context : a number of investors sued Kim Kardashian, boxer Floyd Mayweather and former basketball star Paul Pierce in January for allegedly promoting the crypto EMAX (or EthereumMax).
The plaintiffs suffered “investment lossesand blame the celebrities for talking about and promoting EthereumMax on social media, according to the lawsuit.
EthereumMax – or EMAX – is a token that no one really knew about until celebrities promoted it. (Floyd Mayweather promoted it on a T-shirt at a bitcoin conference in Miami in June 2021). It runs on Ethereum, which hosts thousands of altcoins, but it doesn’t seem to have any use. Right now, it is trading at a price of $0.000000004702, according to Coingecko.
According to the lawsuit, the plaintiffs invested the money after “seen many celebrity commercials for EMAX.”
Kim Kardashian’s defense now that token buyers are relying on just two of her Instagram posts — and in those posts the celeb didn’t give investment advice, she claims.
The complaint also states that the token buyers did not specify that they had seen Kim Kardashian’s messages in advance or that they had purchased the EMAX tokens because of these messages.
“Importantly, no named claimant claims to have seen any of the Instagram posts prior to purchasing tokens during the relevant time period.”
Last year, Kim Kardashian shared to her 228 million followers (she now has 327 million) “a big announcement” via a story where she talked about EMAX tokenomics.
She also clarified in the post that it was “notnot financial advice” – which may or may not come to his rescue: “Additionally, platforms like Instagram and Twitter are loaded with hype and bluster, so ordinary consumers should know that they are not reliable sources of financial advice.“, adds the defense of Kim Kardashian from Friday.