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Update:
- A federal judge in California has dismissed a class action lawsuit accusing celebrities, including Floyd Mayweather and Kim Kardashian, of misleadingly promoting cryptocurrency token EthereumMax.
- The judge has given investors an opportunity to file an amended complaint by Dec. 22.
- Investors argue celebrity promoters teamed with EthereumMax to help promote and sell its EMAX tokens allegedly as part of a “pump-and-dump” scheme.
- The judge determined that investors lacked standing to bring federal Racketeer Influenced and Corrupt Organization Act claims, ruling their injury is “nothing more than disappointment” at what the EMAX tokens are currently worth.
- Investors previously fought back against an attempt by Mayweather to get out of the class action lawsuit, arguing the former professional boxer was a “marquee promoter” of the cryptocurrency.
EthereumMax class action lawsuit overview:
- Why: The plaintiff alleges the company and its celebrity promoters misleadingly promoted its EthereumMax tokens in a money-making scheme.
- Who: EthereumMax, Kim Kardashian, Floyd Mayweather Jr. and Paul Pierce face a class action lawsuit from a cryptocurrency investor.
- Where: The class action lawsuit was filed in California federal court.
(Jan. 11, 2022)
Crypto company EthereumMax, its executives and three celebrity promoters, Kim Kardashian, Floyd Mayweather Jr., and Paul Pierce, face a new class action lawsuit for allegedly artificially inflating the price of EthereumMax Tokens that resulted in their own gain and investors’ loss.
The lead plaintiff, Ryan Huegerich, alleges that EthereumMax Tokens (blockchain-based digital assets that are also called EMAX Tokens) were improperly promoted through high-profile events and social media. When “unsuspecting” investors began buying the tokens, the executives and promoters allegedly sold their own EMAX Tokens for “substantial profits.”
Huegerich purchased EMAX Tokens and allegedly suffered investment losses as a result of EthereumMax’s conduct. The executives being sued are EthereumMax’s co-founders and creators, Steve Gentileand Giovanni Perone, and Justin French, a consultant, developer and spokesman for the company.
Huegerich seeks to represent a nationwide class of all investors who purchased EMAX Tokens between May 14, 2021, and June 17, 2021. He seeks all actual, general, special, incidental, statutory, punitive and consequential damages and restitution; post-judgment interest; injunctive and/or declaratory relief; and attorneys’ costs.
High-profile celebs tout EMAX tokens’ profitability
EMAX Tokens were first launched on May 14, 2021.
On May 26, former NBA player and ESPN commentator Paul Pierce promoted EthereumMax on his Twitter account as a highly lucrative opportunity.
That same day, EthereumMax announced that it was “the exclusive CryptoCurrency accepted for online ticket purchasing” for the Floyd Mayweather vs. Logan Paul Pay-Per-View event on June 6, 2021. Exclusive benefits were promised to those who purchased tickets with EMAX Tokens, such as ringside seats and signed Floyd Mayweather boxing gloves.
Mayweather would continue to promote EthereumMax at the Bitcoin 2021 conference on June 4 and at his June 6 boxing match.
On June 14, reality television personality Kim Kardashian posted a promotion for EthereumMax on her Instagram account, which has over 250 million followers. The complaint cites a poll by Morning Consult, a data intelligence company, which indicated that up to 21% of all American adults and nearly half of all cryptocurrency owners had seen Kardashian’s EMAX Tokens ad. Further, 19% of respondents invested in EthereumMax after hearing about her ad.
The complaint maintains that all three promoters received EMAX Tokens and/or other forms of compensation for promoting EthereumMax.
Tokens value plummets, resulting in investor losses
EMAX Tokens launched with a transaction volume of $16.11 million and a price of $0.00000005875, the complaint says, citing data from CoinMarketCap.
On May 29, the token reached its maximum price of $0.000000863 exhibiting an increase of 1,370 percent, according to court documents.
On July 15, the price hit a low of $0.000000017 per unit. The price has not recovered and trading volume remains significantly low, thus resulting in losses for anyone who bought during the promotional period in question, according to the complaint.
Have you invested in EMAX tokens or other cryptocurrencies? Share your experience in the comments section below!
The plaintiff is represented by John T. Jasnoch and Sean T. Masson of Scott+Scott Attorneys at Law LLP.
The EthereumMax Class Action Lawsuit is Huegerich v. Gentile, et al., Case No. 2:22-cv-00163, in the U.S. District Court for the Central District of California.
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60 thoughts onKardashian, Mayweather, other celebs escape crypto promotion class action
I invested $1k into EMAX and now it’s worth 0.77 cents. I would truly love to be a part of the class action lawsuit, because I never would’ve put, my money in it if I knew the elite were just propping it up to take profits and leave me with the bag.
Hi- I lost over $20,000. Please add me to the suit as well.