The reality star avoids a costly scandal
•A judge in California has dismissed a lawsuit against Kim Kardashian and others for promoting crypto project EthereumMax.
• The lawsuit was first filed in January, but the judge reportedly stated that it was unclear if the plaintiffs had seen the specific promotions shared by the celebrities.
• Despite the dismissal, Judge Fitzgerald said the plaintiffs can refile with amended claims.
• Plaintiffs’ lawyers argued that the high-profile celebrities colluded with the crypto project’s co-founders Steve Gentile and Giovanni Perone to pump
• tokens price (only to leave investors high and dry after it dropped)
.A recent lawsuit against Kim Kardashian and other high-profile celebrities has been dismissed by a judge in California. The lawsuit, filed in January, claimed that the defendants had colluded with the co-founders of crypto project EthereumMax to pump tokens prices and leave investors holding the bag after the value plummeted. Although Judge Fitzgerald dismissed the case, it may be refiled with amended claims.
The plaintiffs argued that Kim Kardashian, NBA star Spencer Dinwiddie and rapper T.I., along with Steve Gentile and Giovanni Perone — founders of EthereumMax — had engaged in a scheme to artificially inflate the price of the project’s EMT tokens. The promotion allegedly presented investing in EthereumMax as a “no-risk opportunity” while obscuring important information such as token liquidity and vesting details. They further accused the parties of failing to disclose their own personal stakes in EthereumMax when they publicly endorsed it on social media platforms like Twitter and Instagram.
However, Judge Fitzgerald ruled that it was unclear if the plaintiffs had seen any of these specific promotions shared by Kim Kardashian or other celebrities before investing in EMT tokens; therefore he could not conclude that those involved were liable for any alleged fraud or misrepresentation. While this case is out of bounds, for now, it illustrates how celebrities can play an influential role in cryptocurrency investment decisions due to their large follower base.
It also serves as a reminder that investors should do their research before getting caught up in any hype generated around cryptocurrency projects. As always, investors should read all available documentation associated with an investment before deciding whether or not to invest — regardless of whether or not famous people are backing it. Additionally, potential investors should never trust anyone else’s opinion over their due diligence when considering investments — celebrity endorsement or otherwise.