(CNN) – Reality TV star Kim Kardashian and boxing legend Floyd Mayweather Jr are facing a lawsuit alleging that celebrities misled investors in their promotion of the cryptocurrency symbol. Cryptocurrency.
The lawsuit, filed January 7 in federal court in Los Angeles, alleges that celebrities promoted tokens sold by EthereumMax, or EMAX, in order to increase their prices and generate a profit “at the expense of their fans and investors.”
The lawsuit states that “the company’s executives, in conjunction with several celebrity promoters… have made false or misleading statements about EthereumMax through social media advertising and other promotional activities.”
According to the indictment, Kardashian promoted EthereumMax in June 2021 on Instagram, when she had 250 million followers.
He wrote in the post “Do you like cryptocurrency?” , followed by a warning that “this is not financial advice” but wanted to share “what my friends just told me” about EthereumMax tokens. He included the hashtag #AD to show that the post was paid advertising, according to the lawsuit.
Meanwhile, Mayweather promoted EthereumMax in his boxing shorts during a high-viewing fight with YouTube star Logan Paul in June, among other occasions.
Representatives for Kardashian and Mayweather did not immediately respond to requests for comment.
Cryptocurrency company EthereumMax was also included in the lawsuit.
“The misinformation related to recent allegations is riddled with misinformation about the EthereumMax project,” EthereumMax said in a statement. We are discussing the allegations and we hope the truth will emerge.”
The complaint, filed by a New Yorker who bought EMAX tokens and lost money, was being proposed as a class action suit for anyone who bought EMAX tokens from mid-May to the end of June 2021.
The case seeks to return the money and recover benefits from the accused.