A US judge has launched a lawsuit against Kim Kardashian and Floyd Mayweather for allegedly misleading fans about buying cryptocurrency.
Other celebrities are accused of using their extensive fan bases to promote the purchase of EMAX tokens to “trick” potential investors and increase the value of the currency.
Such a so-called “pump and dump” scheme involves artificially increasing the price of a currency through the spread of misleading information or advertising prior to its sale.
Documents obtained by the PA news agency in January show that the value of the EMAX token, created by the company EthereumMax, skyrocketed in 2021 attributed to advertising by influencers.
A ruling on Wednesday, also obtained by the PA, acknowledged that the incident had raised “legitimate concerns” about celebrities’ ability to convince fans to “buy snake oil freely.” ease and ease like never before.”
But US district judge Michael Fitzgerald said the law expects investors to “act rationally before betting on the zeitgeist of the moment”.
“This action demonstrates that anyone with technical skills and/or connections can mint a new coin and create their own digital marketplace overnight,” the ruling read.
The court admitted that this action raised legitimate concerns about the ability of celebrities to readily persuade millions of unsuspecting followers to purchase snake oil with unprecedented ease and ease. yes.Legal documents obtained by PA
“Similarly, this action underscores the power of social media in allowing celebrities to communicate directly with their millions of fans at the touch of a button.
“These two facts together seem to have allowed uncensored and highly volatile investment projects to go viral based solely on the paid words of celebrity promoters.
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“Loss inevitably follows. The court admitted that this action raised legitimate concerns about the ability of celebrities to readily persuade millions of unsuspecting followers to purchase snake oil with unprecedented ease and ease. yes.
“However, while the law certainly places limits on those advertisers, it also expects investors to act sensibly before betting on the zeitgeist of the moment.”
Plaintiffs in the lawsuit can file an amended complaint no later than December 22, 2022, the documents said.
https://www.independent.ie/style/celebrity/celebrity-news/kim-kardashian-and-floyd-mayweather-crypto-currency-lawsuit-thrown-out-by-judge-42204223.html Kim Kardashian and Floyd Mayweather crypto lawsuit dismissed by judge