Kim Kardashian’s Crypto Case is Decided by the Judge! The class action lawsuit against Kim Kardashian and Floyd Mayweather Jr. has been dismissed. for their promotion of the crypto token ethereummax. The judge said the law “expects investors to exercise due diligence before placing their bets on the zeitgeist.”
Crypto lawsuit against Kim Kardashian dismissed
A federal judge on Wednesday dismissed a proposed lawsuit against Ethereummax developers and celebrities who support the crypto project, including reality TV star Kim Kardashian, boxer Floyd Mayweather Jr. and former Boston Celtics star Paul Pierce. In his ruling, Judge Michael Fitzgerald of the United States District Court for the Central District of California agreed that the allegations of the case raise legitimate concerns about “the rights of the famous could lead to millions of followers and -there is no point in buying snake oil with ease and reach”. However, he explained:
Although the law puts limits on these advertisers, it also expects investors to do the right thing before placing their bets on the zeitgeist.
Kardashian promoted Ethereummax and the EMAX cryptocurrency token in an Instagram post in June 2021. The reality TV star settled with the US Securities and Exchange Commission (SEC) in October for not disclosing a $250,000 fine for converting crypto tokens on his Instagram account. Mayweather Jr. promoted the same crypto brand in a boxing match at the biggest Bitcoin conference in Miami in June 2021. Attorney John Jasnoch told Fitzgerald:
If the plaintiffs knew the facts related to the financial interest of the promoters in the token and that they were being paid to sell the tokens, they would not have paid as much for the tokens as they did.
Investors sued the founders of Ethereummax and promoters of popular crypto projects in January after the EMAX cryptocurrency lost 97% of its value. Fitzgerald said in his ruling that he would allow the plaintiffs’ attorneys to refile their briefs to amend some of their claims under several statutes cited in the original filing.
Michael Rhodes, Kardashian’s lawyer, told CNBC:
We are satisfied with the reasonable decision of the court in this case.