Bitrabo Editorial
A lawsuit alleging that Kim Kardashian engaged in fraudulent activities by promoting EthereumMax (EMAX), a cryptocurrency, and misleading investors with exaggerated claims, has progressed after her attempt to convince a judge to dismiss the case was unsuccessful.
Kim Kardashian’s Lawyer’s Arguments Dismissed
US District Judge Michael Fitzgerald in Los Angeles dismissed the arguments put forth by Kardashian’s lawyers, who were seeking to dismiss false advertising claims related to her social media posts. The judge concluded that investors’ claims sufficiently demonstrated that Kardashian’s posts were unequivocally false, and one of them, which hinted at a scarcity of EMAX tokens, was misleading.
Judge Fitzgerald cautioned the investors’ lawyers that should they fail to address any remaining shortcomings in certain claims they would be granted only one more chance or face dismissal.
Kim Kardashian Concealed Payment Information
The US Securities and Exchange Commission (SEC) announced in October that it had reached a settlement agreement with Kardashian agreeing to pay $1.26 million to resolve allegations that she violated US regulations by promoting EMAX tokens. The settlement resolved claims made by the SEC that Kardashian failed to disclose she had received $250,000 as payment for posting about the tokens on her Instagram account.
Kardashian settled the case without admitting or denying the allegations made by the SEC and agreed to abstain from promoting any further digital assets for a period of three years.
Floyd Mayweather was granted a more favorable ruling from the judge. Mayweather’s public statements regarding the potential growth of the EMAX token were primarily benign and did not carry significant legal implications. Investors who paid inflated prices for blockchain-based digital assets will be given the opportunity to resubmit their accusations against Mayweather.
Investors who filed lawsuits against several EMAX co-founders and consultants are also pursuing legal action against celebrity promoters. Under the law, individuals who endorse securities, including certain types of cryptocurrencies and stocks, are obligated to disclose that they are receiving compensation for their endorsements and provide information about the amount, source, and nature of those payments.
Featured Image From UnSplash, Charts From TradingView.com