Kim Kardashian, Floyd Mayweather, and other celebrities are seeking dismissal of a second amended complaint filed against them by EthereumMax investors in December 2022.
The investors claim that the celebrities promoted the cryptocurrency without proper disclosure, leading to a “pump-and-dump” scheme. However, the defendants argue that the renewed allegations push the same theory that the court had previously dismissed.
According to the motion to dismiss, the investors’ new theory is that they held onto EthereumMax due to misrepresentations from the celebrities.
But the defendants claim that the investors suffered no injury from merely holding onto the tokens. They also argue that the tokens have no value apart from what the market is willing to pay for, and the court had already rejected the theory revolving around celebrities advertising the tokens to pump their price artificially.
Kim Kardashian has already been fined once for promoting EthereumMax on social media without disclosing that she received payment for it. She reached a $1.26 million settlement with the United States Securities and Exchange Commission (SEC) in October 2022.
The lawsuit highlights the importance of proper disclosure in cryptocurrency promotions, and the SEC has been cracking down on celebrities and influencers who promote crypto without disclosing their financial interests.
