Kim Kardashian’s crypto lawsuit has been thrown out (Picture: Getty)
A US judge has thrown out a lawsuit accusing Kim Kardashian of allegedly misleading fans over the purchase of cryptocurrency.
Both Kim and Floyd Mayweather’s cases have been dismissed after they were said to have used their global fan bases to promote the purchase of EMAX tokens to ‘dupe’ potential investors and increase the value of the currency.
Such so-called ‘pump and dump’ schemes involve artificially raising the price of the currency through the spreading of misleading information or promotion before selling it off.
Documents obtained in January revealed the value of the EMAX tokens, created by the company EthereumMax, shot up in 2021 allegedly thanks to promotion by the influencers.
A ruling on December 7 acknowledged that the case raised ‘legitimate concerns’ about the ability of celebrities to persuade fans to ‘buy snake oil with unprecedented ease and reach’.
However, US District Judge Michael Fitzgerald said the law expected investors to ‘act reasonably before basing their bets on the zeitgeist of the moment’.
Floyd Mayweather’s lawsuit has also been dismissed by a US judge (Picture: Getty)
‘This action demonstrates that just about anyone with the technical skills and/or connections can mint a new currency and create their own digital market overnight,’ the ruling read.
‘Likewise, the action emphasises the power of social media in allowing celebrities to directly communicate with their millions of fans with a touch of a button.
‘These two facts, together, have seemingly allowed unvetted and highly volatile investment ventures to go viral based solely on the paid-for word of celebrity promoters.
Kim agreed to pay $1.26million (£1.1million) in penalties in October (Picture: AP)
‘Losses have inevitably followed. The Court acknowledges that this action raises legitimate concerns over celebrities’ ability to readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach.
‘But, while the law certainly places limits on those advertisers, it also expects investors to act reasonably before basing their bets on the zeitgeist of the moment.’
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Plaintiffs in the case may file an amended complaint by no later than December 22 2022, the documents added.
In October, Kim agreed to pay $1.26million (£1.1million) in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.
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Kim Kardashian’s crypto lawsuit has been thrown out (Picture: Getty)
A US judge has thrown out a lawsuit accusing Kim Kardashian of allegedly misleading fans over the purchase of cryptocurrency.
Both Kim and Floyd Mayweather’s cases have been dismissed after they were said to have used their global fan bases to promote the purchase of EMAX tokens to ‘dupe’ potential investors and increase the value of the currency.
Such so-called ‘pump and dump’ schemes involve artificially raising the price of the currency through the spreading of misleading information or promotion before selling it off.
Documents obtained in January revealed the value of the EMAX tokens, created by the company EthereumMax, shot up in 2021 allegedly thanks to promotion by the influencers.
A ruling on December 7 acknowledged that the case raised ‘legitimate concerns’ about the ability of celebrities to persuade fans to ‘buy snake oil with unprecedented ease and reach’.
However, US District Judge Michael Fitzgerald said the law expected investors to ‘act reasonably before basing their bets on the zeitgeist of the moment’.
Floyd Mayweather’s lawsuit has also been dismissed by a US judge (Picture: Getty)
‘This action demonstrates that just about anyone with the technical skills and/or connections can mint a new currency and create their own digital market overnight,’ the ruling read.
‘Likewise, the action emphasises the power of social media in allowing celebrities to directly communicate with their millions of fans with a touch of a button.
‘These two facts, together, have seemingly allowed unvetted and highly volatile investment ventures to go viral based solely on the paid-for word of celebrity promoters.
Kim agreed to pay $1.26million (£1.1million) in penalties in October (Picture: AP)
‘Losses have inevitably followed. The Court acknowledges that this action raises legitimate concerns over celebrities’ ability to readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach.
‘But, while the law certainly places limits on those advertisers, it also expects investors to act reasonably before basing their bets on the zeitgeist of the moment.’
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Plaintiffs in the case may file an amended complaint by no later than December 22 2022, the documents added.
In October, Kim agreed to pay $1.26million (£1.1million) in penalties, disgorgement, and interest, and cooperate with the Commission’s ongoing investigation.
Got a story?
If you’ve got a celebrity story, video or pictures get in touch with the Metro.co.uk entertainment team by emailing us [email protected], calling 020 3615 2145 or by visiting our Submit Stuff page – we’d love to hear from you.
