Kim Kardashian and Floyd Mayweather were accused in the case
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Kim Kardashian and Floyd Mayweather were accused in the case of the cryptocurrency startup EthereumMax

The cryptocurrency start-up EthereumMax and its promoters Kim Kardashian, Floyd Mayweather Jr and Paul Pierce could become class action defendants. The founders of the startup are accused of having implemented a pump-and-dump fraud system and defrauded investors.

Image source: instagram.com/kimkardashian

Image source: instagram.com/kimkardashian

Ryan Huegerich, who led the group of plaintiffs, claims that EthereumMax artificially inflated the price of its EMAX tokens when it attracted stars to promote the project. After promoting EMAX tokens, celebrity and model Kim Kardashian, boxer Floyd Mayweather Jr. and former NBA player Paul Pearce soared in value and then plummeted as the company sold its own assets, it said in the lawsuit. EthereumMax founders are listed in the document as “Executive Defendant”, and celebrities are “Accused Promoter”

EMAX tokens were created on the Ethereum blockchain and traded independently of the network’s main cryptocurrency. The project started in May last year “With a transaction volume of $ 16.11 million and a price of $ 0.000000005875”… According to the plaintiffs, the cost of cryptocurrency fluctuated whenever the company entered into a partnership agreement with another celebrity or when promotional materials were published on their social networks. Transaction volume rose to $ 44.43 million on May 25, 2021, and to $ 107.7 million a day later, after EthereumMax partnered with Floyd Mayweather Jr. The company agreed to sell tickets to the boxing match with video blogger Logan Paul for sale, and tokens were accepted as a means of payment. According to the plaintiffs, another price increase of EMAX was recorded after an advertisement was published on Kim Kardashian’s Instagram page – this happened on June 14, whereupon the price of the token fell sharply and no longer rose.

Then it only got worse: on July 15th, the EMAX fell to a record $ 0.000000017, a decline of 98%, and on August 1st, the transaction volume fell to $ 157,423 – less than a hundredth of its starting value. Mr. Hugerich has applied to a California federal court to grant collective status to his lawsuit against the startup EthereumMax. He is also demanding compensation.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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