Kim Kardashian and Floyd Mayweather are being sued over allegations they misled investors when promoting a little-known cryptocurrency called EthereumMax to their millions of social media followers.
A class action lawsuit filed last Friday in the U.S. District Court for the Central District of California accuses EthereumMax and its celebrity promoters of working together to artificially inflate the price of the token by making “false or misleading statements” in social media posts.
Kardashian caused a stir last year when she made an Instagram post promoting the EthereumMax token. “Are you guys into crypto????” Kardashian wrote. “This is not financial advice but sharing what my friends just told me about the Ethereum Max token!”
Kardashian included the hashtag #ad in the message, suggesting she was paid to promote it. It’s not clear how much Kardashian was paid by EthereumMax, though estimates have placed her fee per sponsored Instagram post in the $500,000 to $1 million range.
Meanwhile, Mayweather endorsed the token in his boxing match with YouTube star Logan Paul. EthereumMax was accepted as payment for tickets to the event, a move the lawsuit claims boosted trading volumes sharply.
Mayweather also promoted EthereumMax at a major bitcoin conference in Miami, and was subsequently booed off stage. Mayweather doesn’t appear to have disclosed payment for his promotion of the token, the lawsuit said.
Crypto. The buzzword you hear everywhere from the news to friends hyping it up. Has the craze gone mainstream and reached businesses?
Big names like Microsoft, AMC, Starbucks, and AT&T are in, but what do small businesses think? The Strawhecker Group (TSG) used new survey data from nearly 600 small businesses in the U.S. to illustrate their knowledge, attitudes, and acceptance of cryptocurrency.
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Payments professionals across the ecosystem will find this infographic to be a great resource as the market continues to evolve. Are you working with merchants on a crypto strategy?