Kim Kardashian, American reality TV star and Floyd Mayweather Jr. have been sued for misleading investors about a cryptocurrency token.
According to news agency Reuters, celebrities were accused of using EthereumMax or EMAX advertising tokens to make a profit at the expense of their investors and followers.
The lawsuit was filed in a Los Angeles federal Court on January 7. It alleged that the executives of [EMAX] made misleading statements about EthereumMax through social-media advertisements and other promotional activities.
New York resident who had lost his money when he bought EMAX tokens filed the suit.
Kardashian has 278,000,000 followers on Instagram and promoted the token in June 2013.
Kardashian wrote, “This isn’t financial advice but sharing my friends’ information about EthereumMax tokens,” with a hashtag that indicated that Kardashian was posting a paid advertisement. “A few moments ago, Ethereum Max burned 400 trillion tokens literally half of their admin wallet giving back the entire E-Max community.”
Mayweather promoted cryptocurrency tokens during an exhibition boxing match that took place in June 2013.
The highly volatile cryptocurrency is a digital asset that can be traded. It has been discussed many times about the need for regulation. Indian cryptocurrency regulations are still in flux.
Prime Minister NarendraModi held a meeting with stakeholders on November about cryptocurrency. Sources claimed that after the meeting, the government felt the need to stop “over-promising” and “non-transparent” advertisements about cryptocurrency.