Kim Kardashian First Failed In Lawsuit Alleging Crypto Scam

Key Points:

• A court has denied Kim Kardashian’s request to dismiss a lawsuit accusing her of fraudulently promoting the EthereumMax cryptocurrency.
• Floyd Mayweather Jr. earns a partial victory, but he still faces accusations stemming from an undeclared sponsored promotion.
• Investors may retract their claims of paying exorbitant rates for EMAX tokens.

According to Bloomberg, Kim Kardashian was unable to convince a court to dismiss a complaint in which she was accused of defrauding investors in a cryptocurrency called EthereumMax by fraudulently advertising the digital tokens.

Kardashian’s attorneys asked US District Judge Michael Fitzgerald in Los Angeles on Tuesday to dismiss false advertising charges based on her social media postings in which she said that EMAX tokens would be accepted as payment for table reservations at specific nightclubs.

In contrast to Kardashian, Floyd Mayweather Jr. obtained partial success in court. Mayweather’s public assertions regarding the development potential of EMAX tokens, made at a 2021 Bitcoin conference, were deemed “quintessential nonactionable puffery” by Judge Fitzgerald. As a result, Mayweather cannot be sued for expressing his opinion on EMAX’s future potential.

Mayweather cannot be sued for expressing his confidence in the future expansion of EMAX at a 2021 Bitcoin conference because it is “quintessential nonactionable puffery,” according to the court.

Investors who say they paid inflated prices for the blockchain-based digital assets, on the other hand, will have the opportunity to modify and refile their claims that the former boxing champion neglected to disclose he was being paid to promote EMAX.

Fitzgerald rejected the allegations in November, stating that there was simply a lot wrong with this case. In his 84-page judgment on Tuesday, he observed that the investors’ attorneys “artfully corrected” several problems in their prior version of the lawsuit but cautioned that he is only giving them one more chance to resolve lingering flaws in other claims before they are dismissed for good. But, the court stressed that any remaining flaws in the new lawsuit should be rectified, or the allegations will be permanently dismissed.

The complaint names numerous EMAX co-founders and consultants as defendants, in addition to famous promoters such as Kim Kardashian and Floyd Mayweather Jr. Investors who claim to have paid inflated prices for EMAX tokens may now alter and resubmit their claims against all parties involved.

In October, the US Securities and Exchange Commission reported that Kardashian had agreed to pay $1.26 million to resolve claims that she violated US securities laws by promoting EMAX tokens. According to the SEC, Kardashian failed to disclose that she was paid $250,000 to post about the tokens on her Instagram account.

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Harold

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