Kim Kardashian sued for alleged crypto pump-and-dump

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An investor is suing Kim Kar­dashi­an; box­er Floyd May­weath­er, Jr.; Hall of Fame bas­ket­ball play­er Paul Pierce, and the cofounders of Ethereum Max for alleged­ly col­lud­ing to pro­mote the cryp­tocur­ren­cy last spring in a pump-and-dump scheme, accord­ing to papers filed on Jan 7.

Fast facts

  • The investor, Ryan Huegerich, brought the fed­er­al suit in the Cen­tral Dis­trict of Cal­i­for­nia as a class action “on behalf of all investors who pur­chased Ethereum­Max tokens (“EMAX Tokens”) between May 14, 2021 and June 27, 2021, and were dam­aged there­by.” He is seek­ing investors to join the class.
  • On June 14, 2021, Kar­dashi­an pro­mot­ed the new­ly launched coin to her then-228 mil­lion Insta­gram fol­low­ers. Trad­ing vol­ume on that day jumped 35% to US$30 mil­lion, but the price fell 17% from US$0.00000023, accord­ing to Coin­mar­ket­Cap.
  • May­weath­er and Pierce pro­mot­ed EMAX in May. The three celebri­ties were paid cash or tokens for their pro­mo­tions, the suit alleges.
  • Today the price of Ethereum­Max has fall­en by 98% from its peak.
  • Celebri­ties and influ­encers have got­ten into hot water with the U.S. Secu­ri­ties and Exchange Com­mis­sion for pro­mot­ing cryp­to, includ­ing May­weath­er and DJ Khaled, who togeth­er paid fines and penal­ties of US$767,500 in 2018. Ear­li­er this year Elon Musk respond­ed to rumors the SEC was inves­ti­gat­ing him about his tweets admir­ing Doge­coin. “I hope they do! It would be awe­some,” he tweeted.



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