A Class Action Crypto Lawsuit Against Kim Kardashian And Floyd Mayweather Jr. Has Been Dismissed
The lawsuit against Kim Kardashian, Floyd Mayweather Jr., and more, has been dismissed by a California federal judge. The celebs were being sued by investors of EthereumMax, who claimed that EthereumMax executives schemed with celebrity promoters to drive up the price of the EMax token and sell their own tokens for profit. Well, the lawsuit failed, but maybe the investors should see if they can use any of their useless tokens at one of Brie Larson‘s Metaverse art galleries.
Currently, a “crypto winter” is happening because FTX–the leading trading site of cryptocurrency–is bankrupt, and its CEO, Sam Bankman-Fried, is being investigated by multiple authorities. Celebrities like Tom Brady and Gisele Bundchen are also facing a lawsuit for promoting FTX. As for EthereumMax, Kim promoted it on her Instagram last year, and Floyd wore EthereumMax boxing shorts during one of his fights. Kim already suffered once for her role in EthereumMax, as she had to pay a $1.26 million fine to the SEC after not disclosing that she was paid to promote the tokens. But, for now, that’s all she’ll suffer as Kim and co. have been let off the hook by US District Judge Michael Fitzgerald. According to CNN, the judge reasoned that it wasn’t clear in the lawsuit whether the investors had seen the promotions of the token.
In Wednesday’s ruling, Fitzgerald said that investors had failed to show that the executives and promoters schemed to mislead investors, rather than acting in their own self-interest.
The investors’ fraud claims failed because they had not stated whether or when they saw the promotions, the judge wrote.
…While the investors may revise those claims, Fitzgerald permanently dismissed their claim under California’s consumer protection law, which he said applies to tangible goods and services, not “intangible goods” such as cryptocurrency.
A rep for the investors spoke about the decision:
Sean Masson, an attorney who represents the investors in the EthereumMax case, said they plan to revise their claims to add “a host of additional facts demonstrating defendants’ wrongdoing and liability.”
Get her, Jade! Floyd’s side chose silence about this, but Kim’s side piped up:
Michael Rhodes, the lead attorney for Kardashian, said the defense is “pleased with the court’s well-reasoned ruling.”
Attorneys for Mayweather did not immediately respond to a request for comment.
Also named in the lawsuit was former National Basketball Association star Paul Pierce.
As far as scams go, losing all your assets to a bunch of celebrities shilling intangible money is pretty up there. At least when people get scammed into bunk “healing crystals,” they have some pretty stones to look at as they cry about being broke.
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