Jake Paul and Kim Kardashian top list of celebrities sued over crypto ads

Kim Kardashian and Jake Paul are among a host of celebrities currently facing legal action for using their prominent platforms to advertise cryptocurrencies.

With Bitcoin and other cryptocurrencies crashing again this week amid a sell-off, the celebrity lawsuits – which were filed earlier this year – have returned to the public conversation.

In January, Kardashian was named in a class action lawsuit alongside former NBA star Paul Pierce and boxer Floyd Mayweather, who were accused of using their fame to promote EthereumMax as part of a larger scheme. broad aimed at defrauding investors, according to the lawsuit.

According to the lawsuit, these endorsements were part of a larger plan by the creators of EthereumMax to inflate the price of the token before selling it, commonly referred to as a pump and dump.

(L-R) Kim Kardashian and Jake Paul are among a host of celebrities who have been named in lawsuits over cryptocurrency advertising on their respective social media accounts, which collectively boast hundreds of millions of followers.
Dimitrios Kambouris/Getty Images for the Met Museum/Vogue;/Katelyn Mulcahy/Getty Images

The lawsuit says the creators of the digital coin, Steve Gentile and Giovanni Perone, sold their EthereumMax holdings “for substantial profits.”

In June last year, Kardashian promoted EthereumMax, posting an ad for the cryptocurrency on her Instagram Stories.

“Do you like crypto???? This is not financial advice but I share what my friends just told me about the Ethereum Max token!” the ad read.

“A few minutes ago, Ethereum Max burned 400 trillion tokens, literally 50% of their admin wallet, giving back to the entire e-max community.”

Kardashian’s post also encouraged viewers to “Swipe up to join the e-Max community.”

According to the BBC, the lawsuit says sportsman Pierce promoted EthereumMax in a “widely discussed” Twitter post in May 2021, while Mayweather’s June 2021 boxing match with Logan Paul was also used to promote the room.

Mayweather also reportedly promoted EthereumMax at a cryptocurrency conference.

In a separate lawsuit, YouTuber Paul and a host of other celebrities, including singer Nick Carter, social media star Ben Phillips and rappers Soulja Boy and Lil Yachty, were named in a class action lawsuit in February for making the Promoting Safemoon.

CryptoPotato reported at the time that plaintiffs Bill Merewhuader, Christopher Polite and Tim Viane accused celebrities of artificially boosting the token’s value through their endorsements to millions of social media followers.

Paul and Carter’s tweets promoting Safemoon remain online at the time of publication.

It has become apparent that celebrities and public figures, including Tesla and SpaceX CEO Elon Musk, who has frequently tweeted about cryptocurrencies, have the ability to influence the value of coins simply by making positive or negative comments. about them online.

Financial experts have already warned Newsweek about the risks associated with cryptocurrency trading, including extremely volatile prices that can skyrocket or crash on little more than hype alone.

Addressing the lawsuit as it was filed, EthereumMax denied the allegations in a statement to CBS MoneyWatch.

“The misleading narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project,” a company spokesperson said.

“This project prides itself on being one of the most transparent and communicative projects in the cryptocurrency space. We dispute the allegations and look forward to the truth coming out.”

Newsweek has reached out to representatives from Safemoon, EthereumMax, Kardashian, Mayweather, Pierce, Paul, Phillips, Carter, Soulja Boy, and Lil Yachty for comment.

Nick Carter and Soulja Boy
(LR) Nick Carter and Soulja Boy have also been named in lawsuits for promoting cryptocurrencies on their major social media platforms.
Michael Loccisano/WireImage;/Prince Williams/Wireimage

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