Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Judge Dismisses Crypto Lawsuit Against Kim Kardashian – Featured Bitcoin News
A class action lawsuit against Kim Kardashian and Floyd Mayweather Jr. over their promotion of the crypto token ethereummax has been rejected. The judge stated that the law “expects investors to act reasonably before basing their bets on the zeitgeist of the times.”
Crypto lawsuit against Kim Kardashian dismissed
A federal judge on Wednesday dismissed a proposed class-action lawsuit against Ethereummax’s founders and the crypto project’s celebrity backers, 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 US District Court for the Central District of California agreed that the lawsuit’s allegations raised legitimate concerns about “the ability of celebrities to easily persuade millions of unsuspecting followers to buy snake oil with unprecedented ease and reach.” However, he explained:
While the law certainly places restrictions on these advertisers, it also expects investors to act reasonably before basing their bets on the zeitgeist of the moment.
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 failing to disclose a $250,000 compensation for to have featured the crypto token on her Instagram account. Mayweather Jr. promoted the same crypto token at a boxing match and a major bitcoin conference in Miami in June 2021.
Attorney John Jasnoch told Fitzgerald:
If the plaintiffs had known the true facts relating to the promoters’ financial interest in the tokens, and that they were paid to pay those tokens, they would not have paid as much for the tokens as they did.
Investors sued Ethereummax’s founders and the crypto project’s celebrity promoters 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 the lawsuit after amending some of their claims under a number of the statutes cited in the original filing.
Michael Rhodes, an attorney for Kardashian, told CNBC:
We are pleased with the court’s well-reasoned decision in the case.
What do you think about the judge dismissing the lawsuit against Kim Kardashian and other celebrities over their promotion of a crypto token? Let us know in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for damages or losses caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
