Kim Kardashian is in turmoil. A complaint was indeed filed with a California court by several Americans who invested in a cryptocurrency between May 14 and June 27, 2021. As detailed in the Wall Street Journal, it is targeting several celebrities, including reality TV star and boxer Floyd Mayweather, for their participation in an EthereumMax (EMAX) promotion campaign, launched in the spring of 2021.
A cryptocurrency whose specificities quickly raised doubts. Indeed, it partly used the technical infrastructure of Ethereum, but was not associated with any of its developers. In addition, the team behind the cryptocurrency remained very uncertain about its operation. However, she had invested in a gigantic promotional campaign, appealing to several celebrities. Kim Kardashian had thus advertised the cryptocurrency to her 278 million followers on Instagram.
The “pump and dump”
EthereumMax also sponsored a boxing match between Floyd Mayweather and YouTuber Logan Paul. But for the plaintiffs, these promotional campaigns were in reality a “pump and dump”, a type of scam that consists of enticing as many people as possible to invest heavily in a little-known cryptocurrency in order to quickly increase its price. The crooks then resell their assets when the price of the currency peaks, causing it to collapse and causing the various investors to lose a large part of their stake.
As detailed The world, in the case of EMAX, its price collapsed shortly after its promotional campaign, in the summer of 2021. The creators of the cryptocurrency have challenged the accusations of fraud with the Wall Street Journal. They thus affirmed that the complaint which targets them is “filled with false information”. “This deceptive story, reinforced by these recent accusations, is peppered with lies,” said a spokesperson.
In France, reminds BFMTV, celebrities were investigated in 2018 for promoting bitcoin without warning internet users of the risks that exist when investing in cryptocurrency. In addition, scams have multiplied in recent years in the world of cryptocurrencies. In France, nearly 3,000 savers have recently lost a fortune, after having trusted a Dijon association claiming to manage cryptocurrencies.