Cryptocurrency startup EthereumMax and top celebrities including Kim Kardashian and Floyd Mayweather Jr are accused in a proposed class-action lawsuit of colluding in a pump-and-dump scheme that scammed victims.
Ryan Huegerich, the lead plaintiff, alleged EthereumMax inflated the price of its digital EMAX Tokens by getting stars to promote its product. After big names, such as socialite and model Kim Kardashian, boxer Floyd Mayweather Jr, and former NBA player Paul Pierce touted EMAX Tokens, its value increased and then quickly plummeted when the company sold its own shares of the token, the lawsuit [PDF] claimed.
EthereumMax is referred to as the “executive defendants”, whilst the celebrities also being sued are grouped under “promoter defendants.”
“The misleading promotions and celebrity endorsements were able to artificially increase the interest in and price ofthe EMAX Tokens during the Relevant Period, causing investors to purchase these losing investments at inflated prices,” the lawsuit stated.
“In addition, the Executive Defendants disguised their control of EthereumMax to avoid scrutiny and facilitate this scheme. The Executive…
