Kim Kardashian wins EthereumMax lawsuit, as EMAX rises 6.24%
By Alara Jordan
16:02, 8 December 2022
The class action lawsuit against Kim Kardashian and other celebrity endorsers over allegedly misleading fans to purchase cryptocurrency EMAX has now been dropped.
Kardashian, who promoted the EthereumMax token $EMAX on her personal Instagram accounts, disclosed that her promotion was an “advertisement” but did not inform her audience that she had been paid $250,000 to promote the cryptocurrency.
“Are you guys into crypto???”, Kardashian said on Instagram to her then 228 million followers. “This is not financial advice but sharing what my friends told me about Ethereum Max token.”
The Instagram post included a link to the EtheruemMax website with instructions on how to buy the cryptocurrency.
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$1.26m settlement
The lawsuit against Kardashian was filed in January and claimed that the popular media personality used her fan base to boost the value of the EMAX token and dupe investors into what could be a potential crypto scam.
The price of the EMAX rose significantly in 2021, allegedly in relation to the promotion by Kardashian as well as other celebrity endorsers such as boxer Floyd Mayweather Jr.
However, a ruling of 7 December acknowledges the dismissal of the lawsuit, just two months after Kardashian was charged $1.26m (£1.12m) – a sum of $260,000 representing her original fee payment, plus a $1m penalty, to settle the claim by the Securities and Exchange Commission (SEC).
The ruling highlighted that the case raised concerns about the power of celebrities and the ease of influencing their fans to “buy snake oil with unprecedented ease and reach.”
The ruling said, “This action demonstrates that just about anyone with the technical skills and/or connections can mint a new currency and create their own digital market overnight.”
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EMAX token price
At the time of writing, the price of EMAX $0.000000001.75, and is up 6.24% in the last 24 hours.
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