Kim Kardashian’s lawyers argue that there’s no evidence of investors buying EMAX tokens after her Instagram posts.
Earlier this year, American businesswoman Kim Kardashian faced a class-action lawsuit for misleading investors via social media promotions of a cryptocurrency dubbed EthereumMax (EMAX).
Apart from Kardashian, a handful of other social media influencers have been named in the lawsuit. However, Kardashian’s legal team has made a move to set aside this class-action complaint.
As per the lawsuit, Kardashian posted Instagram story posts promoting the project last year in June 2021. Using the EthereumMax cryptocurrency, fans could purchase pay-per-view tickets. Soon after Kardashian posted about it, the price of EMAX surged significantly. However, it crashed later soon draining the hard-earned earnings of several investors.
Along with Kim Kardashian, boxing legends like Floyd Mayweather have also been embroiled in the lawsuit for promoting the Ethereum-based token.
The original court filing shows that all these influencers and celebrity promoters collaborated with the company executives and made misleading statements about the token and their control over a majority of the tokens. Steve Gentile and Giovanni Perone served as the co-founders of the project EthereumMax.
Dismissing the Class-Action Lawsuit by the Legal Team of Kardashian
The legal team of Kim Kardashian has filed for the dismissal of the class-action lawsuit. Her lawyers have responded to all the ten claims brought against the celebrity influencer. About the controversy surrounding Kardashian’s Instagram stories, her lawyers said:
“Crucially, no named plaintiff alleges that they in fact viewed either Instagram post before purchasing tokens during the relevant time period.”
The filing also noted that there’s no evidence over the plaintiff’s claims that influencers received payments in Ether (ETH) for promoting EMAX. They also noted that there’s a lack of evidence that Kardashian received financial compensation for her posts on Instagram.
The legal team also argued that there was no evidence of Kardashian purchasing, receiving, or selling the tokens herself. As a result, the lawyers have put an omnibus motion to entirely dismiss the class action lawsuit, reports CoinTelegraph.
Celebrity influencers have been some or the other way been involved with shady crypto promotions. Before this, Floyd Mayweather was also involved with promoting the fraudulent Centra Tech initial coin offering in 2017. However, he got off from it since the judge ruled that there’s no evidence of investors purchasing it after Mayweather’s promotion.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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