Crypto promotion lands Hollywood celebs in court

Crypto promotion lands Hollywood celebs in court

A number of Hollywood darlings are being sued by an investor over their role in promoting cryptocurrency Ethereum Max, which soared with their backing over the summer but plunged after the hype died out.

A class-action complaint regarding the controversial cryptocoin was filed last Friday in the US District Court for the Central District of California. The action is against reality TV star Kim Kardashian, boxer Floyd Mayweather and former basketball pro Paul Pierce, as well as the co-founders of Ethereum Max and several others. It was filed by New Yorker Ryan Huegerich on behalf of himself and other investors who acquired Ethereum Max tokens amid celebrity endorsement in mid-2021 and lost their money after the coin dropped over 70% in the following months.

The complaint alleges that the crypto coin in question is a “speculative digital token created by a mysterious group of cryptocurrency developers” and blasts the celebs for misleading millions of their social media followers into buying the shady cryptocurrency to boost its price. The case is referred to as a cryptocurrency “pump and dump” scam, where the coin price is artificially inflated only to make profit from a sell-off later.

“Defendants touted the prospects of the company and the ability for investors to make significant returns due to the favorable ‘tokenomics’ of the EMAX Tokens. In truth, defendants marketed the EMAX Tokens to investors so that they could sell their portion of the float for a profit,” the complaint read.

The founders of Ethereum Max have rejected the allegations, with the company spokesperson stating that “the deceptive narrative associated with the recent allegations is riddled with misinformation,” as cited by the Wall Street Journal. Representatives for the celebrities did not respond to requests for comment.Ethereum Max had its first share of the spotlight when Floyd Mayweather wore a shirt with the currency’s name on it to the 2021 Bitcoin Conference in Miami. The token also sponsored his boxing match with YouTube celebrity Logan Paul. Former NBA star and sports commentator Paul Pierce promoted the coin on his Twitter account, writing “I got @ethereum_max I made more money with this crypto in the past month than I did with y’all [ESPN sports channel] in a year.” Kim Kardashian promoted the coin in multiple videos on her Instagram, where she has 278 million followers. Her 2021 post asking followers to join “the Ethereum Max Community” was dubbed “the financial promotion with the single biggest audience reach in history” by the head of the UK’s Financial Conduct Authority, Charles Randell.

Ethereum Max quickly rose in value following this hype. In June, the token peaked at an all-time high of $0.000000597636 apiece, but it lost all of its value after the promotional wave subsided, now trending low at $0.00000002 with a 24-hour trading volume of some $57,000, according to Bitcoinist.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Authorities in Warsaw have allowed citizens to forage for firewood in forests to keep their homes heated amid spiralling energy costs. Poland is in the midst of a coal shortage after banning Russian
подробнее...

Polish companies have limited the sale of coal in the country after blocking imports from Russia, Deputy Minister of State Assets Piotr Pyzik said during his speech in Parliament on Friday.He
подробнее...

The average price of petrol in the UK has gone above £1.70 a liter for the first time, according to the latest data revealed by the motoring organization RAC.The cost of unleaded petrol, the British
подробнее...

Europe’s largest producer of atomic energy, Electricite de France SA (EDF), usually exports cheap power during the winter but may be forced to import it this year, Bloomberg reported on
подробнее...

If a fresh wave of government assistance is not released immediately, some 500,000 small businesses in the UK will go bankrupt within weeks, the chairman of the Federation of Small Businesses (FSB)
подробнее...

The UK has introduced a 25% windfall tax on energy producers’ profits, which will fund support grants for residents who are unable to pay their soaring energy bills, UK Chancellor of the Exchequer
подробнее...

The suspension of Russian gas supplies would be “a serious blow” to the welfare of the Austrian people as it threatens some 300,000 jobs, Kronen Zeitung newspaper reported citing the Federation of
подробнее...

Several French cities have begun handing out food vouchers to the population to compensate for increasing prices, the TV channel France 2 reported on Monday.According to the report, citizens are being
подробнее...

Asian countries became the largest importers of Russian oil for the first time in April 2022, overtaking Europe, Bloomberg reported on Friday, citing Singapore-based analytics firm Kpler.Roughly 71.7
подробнее...

Global food insecurity has reached levels not seen since the financial crisis of 2008, according to Sara Menker, CEO of Gro Intelligence, a global company that uses artificial intelligence and public
подробнее...

President Vladimir Putin told the Eurasian Economic Forum on Thursday that Russia has maintained its position as the world’s leading wheat exporter.“We have become absolutely competitive at the global
подробнее...

Komatsu, Japan’s largest construction and mining equipment manufacturer, has resumed deliveries to Ukraine, halted after the launch of Russia’s military offensive, the Nikkei newspaper reported on
подробнее...

The US government has allowed powdered infant milk imports from the UK, the Food and Drug Administration announced in a statement on Tuesday, as the country is grappling with a severe shortage.British
подробнее...

Shipments of Russian oil to India exceeded 396,000 tons in March, according to the Ministry of Commerce. That is more than a 15% rise from the previous month and a 40% increase on an annual
подробнее...

An embargo on Russian natural gas would seriously affect the German economy, as well as society, Labor Minister Hubertus Heil said in an interview with news outlet Funke, published on Saturday.“We
подробнее...

A EU commissioner, Margrethe Vestager, told Germany’s Handelsblatt newspaper on Wednesday that European consumers will have to put up with permanent price increases for energy as the continent wants
подробнее...

The European Commission on Friday announced the introduction of an anonymous online platform for people to report any violations of sanctions on Russia and Belarus.“Aware of anyone violating EU
подробнее...

The Haidach underground gas storage facility in Austria may not be refilled by the next heating season due to a conflict between Berlin and Moscow over the seizure of Gazprom’s German subsidiary,
подробнее...