Last year, a hidden crypto project called Ethereum Max (EMAX) got a lot of attention. The project was promoted by influencer Kim Kardashian and boxing legend Floyd Mayweather.
Ethereum Max has turned out to be the centerpiece of a global pump and dumb scheme. These scams used the influence of socialites and other celebrities to drive up the price of tokens, run by the founders taking the money, leaving people holding worthless tokens.
Kim Kardashian and other influencers are facing a class action lawsuit in the United States for alleged participation in the scheme. I’ve been trying to turn it down.
Kardashian’s legal representatives have filed a motion to dismiss the lawsuit, according to a report by the International Business Times (IBT). The document alleges that the plaintiff made “misleading” accusations about Kim’s role in Ethereum Max’s pump-and-dam scheme.
The motion was filed in California on July 29, according to IBT’s report. In it, Kim Kardashian’s legal team argued that 10 claims from plaintiffs were “baseless.”
Importantly, there is no name of the plaintiff who claims to have actually seen any of the Instagram posts prior to purchasing tokens during the relevant period.
As Bitcoinist reported in 2021, the influencer posted stories on her Instagram account and asked fans if they were “interested in cryptocurrencies.” She encouraged people to join the E-Max community, although she made it clear that it shouldn’t be taken as unsolicited advice.
Kardashian has over 220 million followers on this social network. Hence why many of her supporters questioned the project and the legitimacy of her claims.
Ethereum Max used the logo of Ethereum, the second-largest cryptocurrency by market capitalization, and part of its name that could attract new investors.
Did Kim Kardashian cheat her followers?
Additionally, Kardashian’s legal representatives have claimed that he will not be compensated in the form of EMAX tokens for Instagram stories talking about Ethereum Max. In fact, the document claims the influencer received no financial compensation for her posts.
The court must dismiss all claims against prominent business woman, media personality and social justice activist Ms. Kardashian (…).
Coingecko data shows that the token has gone up significantly as of the Kardashian post in May 2021. Since then, the token has come under heavy selling pressure and lost almost all of its value.
However, the court has yet to rule on this allegation and Kardashian’s alleged involvement in the promotion of Ethereum Max.