Judge Allows Legal Claims Against Celebrities Promoting EMAX Token

Generated by AI AgentCoin World
Friday, Aug 8, 2025 4:21 pm ET1min read
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Aime RobotAime Summary

- U.S. judge allows investors in four states to sue celebrities promoting EMAX token, reviving claims against Kim Kardashian, Floyd Mayweather, and Paul Pierce.

- EMAX's price surged 116,000% after celebrity endorsements before crashing 99%, with investors alleging a "pump and dump" scheme.

- Kardashian settled with SEC for $1.26M over undisclosed EMAX promotion payment, while the case could set legal precedents for crypto celebrity endorsements.

A U.S. federal judge has permitted investors in New York, California, Florida, and New Jersey to pursue legal claims against celebrities who promoted the EthereumMax (EMAX) token, reinvigorating a significant part of the ongoing case against the cryptocurrency project. U.S. District Judge Michael Fitzgerald ruled that class actions can proceed for investors who bought EMAX between May and June 2021, though he denied a nationwide class action due to concerns over the extraterritorial application of state laws and the difficulties in proving uniform claims across jurisdictions.

The decision enables legal action to continue against Kim Kardashian, Floyd Mayweather, and former NBA player Paul Pierce, whose endorsements played a key role in amplifying the visibility of EMAX during its peak. Kardashian’s 2021 Instagram post alone is estimated to have reached up to 200 million people, significantly contributing to the token's rapid rise in value. The case also includes individuals and entities linked to the creation of the token, such as EMAX Holdings, co-founder Giovanni Perone, and alleged consultant Jona Rechnitz.

EthereumMax was marketed as a “culture token,” but its price surged more than 116,000% within a week following celebrity endorsements before plummeting over 99%. Investors have since alleged that the project was part of a “pump and dump” scheme. Fitzgerald had initially dismissed the original lawsuit in December 2022, arguing that investors were responsible for conducting their own due diligence. However, he allowed plaintiffs to refile, and they initiated the current legal action seven months later.

Separately, Kardashian agreed to a $1.26 million settlement with the U.S. Securities and Exchange Commission in October 2022 for failing to disclose a $250,000 payment she received to promote EMAX. The settlement did not involve an admission of wrongdoing.

The renewed legal battles underscore the increasing regulatory and legal scrutiny of celebrity endorsements in the cryptocurrency space. As the case progresses, it may establish a significant legal precedent for similar cases involving high-profile figures and speculative crypto projects[1].

Source:

[1] Kim Kardashian, Floyd Mayweather Face Renewed EthereumMax Legal Battles (https://financefeeds.com/kim-kardashian-floyd-mayweather-face-renewed-ethereummax-legal-battles/)