In 2018, Kim and the boxer was sanctioned along with musician DJ Khaled for illegally promoting a digital currency firm.
Kim Kardashian and Floyd Mayweather will face a lawsuit for alleged cryptocurrency fraud . It transpired that the celebrities were allegedly involved in the promotion, among their social media followers, of a digital currency with little economic stability.
It was reported that a class action lawsuit was filed before the courts of California, United States, where EthereumMax , the cryptocurrency in question, and the celebrities who advertised in its favor were directly accused . The image and popularity of personalities such as Kim and Floyd caused an increase in the price of the currency, according to the CNBC portal .
The cryptocurrency would have hired several personalities with large numbers of followers. Kim Kardashian was one of them. Last year, Kanye West’s ex-wife posted a video calling on her fans to join the new economy directly with EthereumMax .
In the visual, Kim commented that it was not a paid mention , but just advice. However, the hashtag #ad was used in the same video , which infers that the currency offices may have given him a reward for traffic on social networks.
Although the audiovisual no longer appears directly in the model’s account, in the profile of the cryptocurrency brand there is a summary of activities from the past year and Kim is present as one of the highest achievements. According to the CNBC media , the collaboration could have cost between half and USD 1 million dollars.
The cryptocurrency celebrated the collaboration with Kim Kardashian
For his part, the boxer would have supported EthereumMax in another way. Mayweather accepted that cryptocurrency as a transfer to access his fight with youtuber Logan Paul . The class action lawsuit pointed out that this move in the viral brawl increased the popularity of the cryptocurrency.
Similarly, Floyd Mayweather wore a t-shirt with the digital currency logo during a Bitcoin conference . Until now, the athlete has not revealed any information about how much money he would have received for the use of his image.
Both Kim Kardashian’s posts and Floyd Mayweather’s actions are branded as false or misleading statements , the lawsuit read. Similarly, in the legal claim for fraud, it was emphasized that EthereumMax has no relationship with Ether , one of the best-placed cryptocurrencies on the market.
The boxer has a life full of luxuries
One of the main promoters of the class action suit, businessman Ryan Huegerich confirmed that his investments were affected by the celebrity posts. This resulted in significant financial losses .
The stability of EthereumMax has always been in doubt by experts in the field. Since the middle of last year, this cryptocurrency has lost about 97% of its initial value . Some lawyers in this type of economy have analyzed that they are only looking to inflate their values and enter into speculation.
On the other hand, it has not been reported what the fine or sanction that Kim Kardashian and Floyd Mayweather would face if the ruling is favorable to the class action lawsuit. The information is still developing, but the number of followers of the stars certainly set the tone. Kim has a profile of 278 million fans , while the boxer defends himself with almost 28 million.
After her divorce, Kim Kardashian has been seen with Pete Davidson (Photo: Grosby)
It should be noted that this would not be Floyd’s first wake-up call regarding crypto fraud . At the end of 2018, the famous boxer faced a fine of almost USD 800 thousand dollars . He was also singled out for promoting illegally or fraudulently.
On that occasion, Mayweather pocketed USD100,000 and musician DJ Khaled USD50,000. The beneficiary was the firm Centra Tech , The Guardian newspaper reported . Both personalities used their presence on social networks to mention said currency, especially on Instagram and Twitter, where they have a significant number of followers.