January 29, 2022

Pump and dump – Kim Kardashian at the heart of a cryptocurrency scam

Posted

Celebrity and boxer Floyd Mayweather are accused of artificially inflating the price of EthereumMax.

The star Kim Kardashian had talked about crypto on his Instagram account with the mention of publicity.

REUTERS/GETTY/PHOTOMONTAGE

A class action was filed last Friday in a California court against the promoters of EthereumMax for artificially inflating the price of the token. Prominent celebrities including Kim Kardashian and boxer Floyd Mayweather are accused of “false or misleading statements” made on social media.

EthereumMax (EMAX) has lost around 97% of its value since June, leading investors to label it as a “pump and dump” system, the technique that allows insiders to sell for a full price. token which they have been diligently promoting.

Declared promo

Kim Kardashian had indulged in an Instagram post for the EthereumMax token. “Are you guys in crypto ????, she had notably written, this is not financial advice but a sharing of what my friends have just told me about the Ethereum Max token!”

Kardashian included the hashtag #ad in the post, signaling that she was being paid to promote it. It’s unclear exactly how much Kardashian touched, with sponsored Instagram posts for an influencer of her caliber trading between $ 500,000 to $ 1 million.

For his part, Mayweather dubbed the token during his boxing match with YouTube star Logan Paul. EthereumMax was accepted as payment for tickets to the event, a move that the lawsuit claims dramatically increased trading volumes.

EthereumMax does not

EthereumMax ‘has no connection’ with ether, the second largest cryptocurrency, complainants say, adding that it was another way to trick investors into believing the token worked with the blockchain Ethereum.

Representatives for Kardashian and Mayweather were not immediately available when contacted by CNBC. EthereumMax disputed the fraud charges with the “Wall Street Journal”, saying the complaint was “filled with false information.”

(word)