Kim Kardashian’s Crypto Scam Lawsuit Dismissed by Federal Judge

The EMAX case gets thrown out, even though Kardashian previously agreed to pay up over $1 million in fines.

Kim Kardashian’s Crypto Scam Lawsuit Dismissed By Federal Judge

Kim Kardashian, one of the most prominent American socialites, escaped legal trouble today along with several other celebrities who endorsed the crypto pump and dump scheme EthereumMax (EMAX).

Previously, it was alleged that reality show superstar Kardashian and boxing legend Floyd Mayweather had been in cahoots with EthereumMax’s (EMAX) founders to ‘dupe’ their social media audience into investing in the crypto Ponzi scheme. The Californian federal judge dismissed the case because of “heightened pleading standards.” Ultimately, this means that the investors who filed for a class-action lawsuit couldn’t provide enough evidence for the case to be tried in court.

A Bunch of Celebrities Acquitted on All Counts

The story first surfaced in October, when the Securities and Exchange Commission (SEC) took a shot at Kim Kardashian by indicating that the superstar failed to disclose that she had received a whopping $250,000 in a promotional deal for EMAX cryptocurrency.

According to the SEC, the Armenian-American socialite lured her 331 million Instagram followers into investing in the scam coin, breaking federal securities laws and anti-touting provisions. In response, Kardashian agreed to pay $1.26 million and pledged not to endorse any cryptocurrencies for at least three years.

However, many other celebrities are involved in the EMAX case, including the eight-time boxing champion Floyd Mayweather Jr. and Paul Pierce from the Boston Celtics. All of the aforementioned were acquitted on all counts, with the United States District Judge Michael Fitzgerald even marking that “the investors were expected to act reasonably before basing their bets on the zeitgeist of the moment.”

The incident serves as a great example of how easily celebrities on social media can influence millions of people, raising the question of responsibility and reminding audiences interested in cryptocurrencies to DYOR (Do Your Own Research).

On the Flipside

  • The plaintiffs in the EMAX lawsuit can still appeal the case until December 22, 2022.
  • Following the news, EMAX gained 2.9% in the last 24 hours, according to CoinGecko.
  • However, the Ponzi crypto is unlisted and usually has a daily trading volume of less than $1,000.

Why You Should Care

The outcome of this incident could help prevent celebrities from endorsing pump-and-dump schemes in the future.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.