Several celebrities, including social media star Kim Kardashian, are accused of defrauding their followers by promoting a declining cryptocurrency.
A class action lawsuit was launched a few days ago against social media star Kim Kardashian, boxer Floyd Mayweather, and basketball player Paul Pierce. The three celebrities, as well as several other accused who remained anonymous, are now suspected of having defrauded their subscribers, by promoting EthereumMax, a giant scam-like crypto.
Pump and Dump
Concretely, the offending personalities are accused in the complaint reported by the Wall Street Journal for praising the merits of EthereumMax, a non-fiat currency modeled on Ethereum. After several messages of praise last May, the Emax price exploded quickly (+ 632%), before finally collapsing a few days later. Complainants are now accusing influencers of deliberately orchestrating the cryptocurrency price explosion by encouraging their community to invest. All with the aim of resell their own assets at a high price, thanks to what is called the “pump and dump” technique.
It is illegal to drive up a stock market price for personal gain. Last year, amateur traders had already paid the price, trying to undermine the giant Wall Street. In the cryptocurrency sector, it is Elon Musk who is regularly called to order by regulators for his messages calling on Internet users to invest (or not) in a particular currency.
Since its explosion last June, the price of Emax fell by 98%. For their part, Kim Kardashian, Floyd Mayweather and Paul Pierce did not wait for the crisis to resell their assets, reports the complaint which is based on the activities listed on their wallet. Remember, however, that the universe of cryptocurrencies may be in full expansion, any investment involves risks, all the more so on currencies that are so volatile and unstable. Last summer in France, the DGCCRF fined Nabilla Benattia-Vergara 20,000 euros for praising the merits of Bitcoin, without informing Internet users that it was paid advertising.