Kim Kardashian And Floyd Mayweather Asked To Reject The Latest Lawsuit Regarding Crypto Promotion

Kim Kardashian has been fined for promoting EthereumMax on social media. (photo: Twitter @KimKardashian)

JAKARTA - Kim Kardashian, Floyd Mayweather, and other celebrities tried to convince the judge to reject the lawsuit of the two newly revised EthereumMax (EMAX) investors to sue them for the promotion of EMAX without proper disclosure.

The celebrities asked California federal judges to reject the lawsuits of the two investors filed in December 2022. According to the defendants, the new allegations prompted the same basic theory that had previously been rejected by the court.

The investor class-action lawsuit is based on the premise that the EthereumMax team is working with celebrities to sell EMAX tokens to investors in what they described as "pump-and-dump" schemes.

However, the defendant's motion to reject a recently recycled lawsuit claims that the theory of celebrities promoting EMAX tokens to artificially pump their prices has been rejected by the court previously because the token has no value other than what the market is willing to pay. They wrote:

"The previous trial rejected all lawsuits for fundamental errors. The addition of new claims, defendants, and more than 100 pages of accusations that are largely irrelevant cannot cure the disability."

In addition, the motion proposes that the new theory of investors is that they hold the EMAX because of the misrepresentation of celebrities. However, the motion to reject the lawsuit argues that investors "did not suffer losses just because they held the token".

Meanwhile, Kardashian has been fined for promoting EthereumMax on social media. On October 3, 2022, the American socialite reached a $1.26 million deal with the United States Securities and Exchange Commission (SEC) after failing to disclose that he received a US$250,000 payment to promote the crypto project.

The SEC recently issued a warning to celebrities promoting crypto. On February 17, the SEC reminded celebrities that the law required them to reveal how much they received and from whom when promoting investment in securities.

Apart from Kim Kardashian and Floyd Mayweather, there are several other celebrities who also have problems with crypto cases in the world, including:

John McAfee - founder of McAfee Antivirus was stopped by the SEC in 2018 for allegedly being involved in promoting digital currency token sales without revealing that he was paid to promote it.

Jared Leto - this actor became an investor in a crypto project called Voise in 2017, but the project was known to have failed and was eventually stopped.

Ghostface Killah - rapper was one of the founders of a crypto project called Cream Capital in 2017, but the project was never launched.

These singers created a digital currency called "Acoin" for use in developing African cities, but the project is still in the development stage.

Lionel Messi - the famous footballer became a global ambassador to crypto company Sirin Labs in 2017, but the project is known to have failed and Sirin Labs suffered heavy losses.

The celebrity promoted LydianCoin Offering (ICO) in 2017, which was later stopped by the Securities and Exchange Commission (SEC) for being accused of fraud.

DJ Khaled - In 2017, DJ Khaled promoted the ICO of Centra Tech through his Instagram account, which was later stopped by the SEC for being also accused of fraud.

Steven Seagal - The actor was once ambassador to a crypto project called Bitcoiin2Gen (B2G) in 2018, which was later stopped by regulators for being considered a Ponzi scheme.

Gwyneth Paltrow - Actress was involved in a crypto company called Abra as an advisor in 2018.