Cryptocurrency lawsuit to rule in favor of Kim Kardashian

Image source: Analytics Insight

Cryptocurrency is no stranger to problems, and scams have become a prominent presence in the crypto space, which have led to lawsuits.

Kim Kardashian and Floyd Mayweather are among the high-profile names who found themselves in a lawsuit with top cryptocurrency Ethereum’s EthereumMax.

Lawyers were accusing them of scamming investors with cryptocurrency.

However, in a string of events, the two will likely win the lawsuit.

The ruling

On Monday, US District Judge Michael Fitzgerald issued a court ruling saying the investors’ lawyers were acting like the SEC.

The tentative rulings show how a judge is set to rule in a case before hitting the court.

Earlier this year, investors sued several celebrities.

They claimed that Kim Kardashians and Floyd Mayweather worked to pump the price of the EthereumMax tokens and dump them, leaving others out of pocket.

EthereumMax

Ethereum is the blockchain of the world’s second-largest cryptocurrency, and EthereumMax is its token.

The token made headlines in 2021 when celebrities started promoting it.

However, it doesn’t appear to have any utility.

Judge Fitzgerald noted that Kardashian and Mayweather didn’t care to label EthereumMax as a security “for obvious reasons.”

Kim Kardashian

Last month, Kim Kardashian agreed to pay the SEC $1.26 million to settle the charges accusing her of shilling EMAX.

The TV celebrity teased a big announcement with an Instagram story, talking about EMAX’s tokenomics.

While they reached a settlement, Kim Kardashian did not admit or deny the regulator’s charges.

According to SEC chair Gary Gensler, the government agency picked up the high-profile case.

The case fell to them because Kardashian’s post failed to mention how much she was paid to promote EMAX – a necessary step in securities promotion.

Charles Randell, the UK Financial Conduct Authority chair, later labeled the celebrity’s post as “the financial promotion with the single biggest audience reach in history.”

Reference:

Kim Kardashian, Floyd Mayweather set to win Ethereum Max lawsuit

Opinions expressed by Coin Week contributors are their own.