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Kim Kardashian Relieved as Judge Dismisses Crypto Scam Lawsuit

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An investor-led class action lawsuit against EthereumMax’s creators and celebrity backers Kim Kardashian and Floyd Mayweather Jr. over their social media promotion of the cryptocurrency was dismissed by a federal judge on Wednesday.

Investors who purchased EMAX tokens claimed they had lost money after believing the celebrity influencers about the value of cryptocurrencies. According to the lawsuit, the defendants conspired to unnecessarily inflate the value of EMAX tokens.

Judge noted that he recognized worries about celebrities including Kim Kardashian

According to the judge’s ruling, Michael Fitzgerald, “celebrities’ ability to readily compel millions of followers to buy snake oil with unprecedented ease and reach” is a legitimate concern raised by the lawsuit’s claims.

“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.”

wrote Fitzgerald, of the Central District of California

According to the judge’s decision in U.S. District Court in Los Angeles, the plaintiffs’ claims were not sufficiently supported, particularly “given the heightened pleading standards” for fraud claims.

According to court documents, the plaintiffs in the case included Steve Gentile and Giovanni Perone, the co-founders of EthereumMax, as well as Justin French, a consultant, and developer for the cryptocurrency, in addition to Kim Kardashian, Mayweather, and former Boston Celtics star Paul Pierce.

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Kim Kardashian Relieved as Judge Dismisses Crypto Scam Lawsuit 2

In his decision, Fitzgerald stated that he would permit the plaintiffs’ attorneys to resubmit their lawsuit after revising some of their claims under a number of the laws cited in the initial complaint, including the Racketeer Influenced and Corrupt Organizations Act, or RICO.

The dismissal came after investors in the defunct cryptocurrency exchange FTX submitted a class-action lawsuit against former FTX CEO Sam Bankman-Fried and celebrity clients of the business, including Tom Brady of the NFL. They claimed that they had overstated the value of the company’s cryptocurrency tokens in their marketing materials.

The decision also came two months after Kim Kardashian agreed to settle SEC allegations that she failed to disclose a $250,000 payment for promoting EthereumMax on her Instagram account by paying $1.26 million and refraining from promoting cryptocurrencies for three years.

In his decision on Wednesday, Fitzgerald stated that the EthereumMax lawsuit is part of a larger controversy involving celebrity and influencer promotional tactics.

Kim Kardashian Wins a Tentative Court Ruling Over EthereumMax Lawsuit

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Kim Kardashian and Floyd Mayweather Jr. have won a preliminary court ruling that dismisses a lawsuit accusing them of defrauding EthereumMax investors.

Investors claimed in a January complaint that the reality television star and former boxing champion overvalued the EMAX tokens, causing them to pay “inflated prices” for blockchain-based digital assets. Paul Pierce, a former Boston Celtic, was also named as a defendant in the putative class-action lawsuit.

US District Judge said that Kim Kardashian didn’t view the tokens as a security

In a written order issued on Monday, US District Judge Michael Fitzgerald stated his “tentative view,” which is that the investors’ attorneys are “trying to act like” the US Securities and Exchange Commission, but “haven’t chosen to view the tokens as a security” and haven’t used a typical securities fraud claim in their case.

Fitzgerald claimed that for “obvious reasons,” the celebrities didn’t “care to label the tokens as a security.” The judge announced that he would later issue a formal written order.

Before the investor case receives a final ruling, a lawyer for Kim Kardashian declined to comment. An inquiry for comment was not immediately answered by an attorney for the investors. The decision is made in the midst of a larger discussion about the SEC’s regulatory authority over digital assets.

In October, the US markets watchdog revealed that Kim Kardashian had agreed to pay $1.26 million to resolve claims that she broke US regulations by promoting EMAX tokens. According to the SEC, Kardashian failed to disclose that she received $250,000 to post about the tokens on her Instagram account.

Kardashian reached a settlement without confirming or rejecting the SEC’s claims. She also consented to refrain for three years from promoting any new digital assets.

Anyone who advertises a security, such as a stock or even some varieties of cryptocurrencies, is required by law to disclose the amount, the source, and the nature of any payments they receive, in addition to the fact that they are being compensated for doing so.

Celebrities are also accused in several instances of promoting cryptocurrencies that end up as a scam or rug pull at a later stage.

Kim Kardashian Faces Charges From the SEC Over EthereumMax Promotions

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Kim Kardashian is facing scrutiny over her EthereumMax promotions. Kim has been charged by the Securities and Exchange Commission for promoting a crypto asset security issued and sold by EthereumMax on social media without reporting the compensation she got for the promotion.

In exchange for dropping the accusations, paying $1.26 million in fines, disgorgement, and interest, and cooperating with the Commission’s continuing investigation, Kardashian agreed to settle the case.

Kim Kardashian failed to reveal the promotion

According to the SEC’s decision, Kardashian failed to disclose that she received $250,000 from EthereumMax to write a post regarding EMAX tokens on her Instagram account. Kardashian’s tweet included a link to the EthereumMax website, where prospective investors could find instructions on how to buy EMAX coins.

“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it doesn’t mean that those investment products are right for all investors. “We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.”

SEC Chair Gary Gensler

According to the SEC’s ruling, Kim Kardashian broke the federal securities laws’ anti-touting clause. Kardashian consented to pay the aforesaid $1.26 million. The amount included about $260,000 in disgorgement (which reflects her promotional money), plus prejudgment interest, along with a $1,000,000 penalty, without admitting or contesting the SEC’s allegations. Kardashian also consented to refrain for three years from endorsing any cryptocurrency-related securities.

Another lawsuit was filed earlier this year against Kim and Floyd Mayweather regarding the EthereumMax promotion. A class-action complaint accusing EthereumMax (particularly the business) and its celebrity boosters of cooperating to fraudulently inflate the price of the EMAX token.

In 2021, reality star Kim Kardashian stirred up controversy with a post on Instagram endorsing the EMAX token. Are you guys into crypto???? she asked in a post. This is just what my buddies recently informed me about the Ethereum Max token, not financial advice. She implied that she was paid to advertise it by including the hashtag #ad in the message.

While competing against YouTube celebrity Logan Paul, boxing great Floyd Mayweather Jr. promoted the token.

Kim Kardashian sued for promoting alleged crypto scam

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Kim Kardashian and Floyd Mayweather Jr. are being sued for promoting the alleged crypto scam regarding the EthereumMax token. The promotion of the said altcoin by the reality star and the boxing legend to their millions of social media followers misled investors.

The lawsuit that was filed on 7 January 2022 in Los Angeles federal court, asserts the celebrities trumpeted tokens sold by EthereumMax (EMAX) only to get its price to rise and to earn themselves a profit “at the expense of their followers and investors.”

The lawsuit stated,

“The company’s executives, collaborating with several celebrity promoters … made false or misleading statements about EthereumMax through social media advertisements and other promotional activities.”

Floyd Mayweather and Kim Kardashian served

A class-action lawsuit was filed last Friday in the U.S District Court for the Central District of California accuses EthereumMax (naming the company specifically) and its celebrity promoters of working together to artificially hike the price of the token.

The reality star, Kim Kardashian, created a flutter on her Instagram post, in 2021, promoting the EMAX token. She wrote, “Are you guys into crypto???? This is not a financial advice but sharing what my friends just told me about the Ethereum Max token!” She mentioned a hashtag #ad in the post, implying that she was paid to promote it.

In the meantime, the boxing legend, Floyd Mayweather Jr. promoted the token in his boxing match with YouTube star Logan Paul. EMAX was accepted as a mode of payment for the tickets to the event; the lawsuit claims that this move had boosted the trading volume of the asset. Mayweather had also promoted the token at a huge Bitcoin conference in Miami, but whether he was paid to do so wasn’t disclosed by the boxing legend, according to the lawsuit.

According to the lawsuit,

“EthereumMax’s entire business model relies on using constant marketing and promotional activities, often from “trusted” celebrities, to dupe potential investors into trusting the financial opportunities available with EMAX tokens.”

Celebrity endorsements can be as glamorous as it seems, but it is always a safer way to play the game by having done one’s own research over investments.

BNB Rises As Binance Opens Two New Offices In Brazil

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The leading cryptocurrency exchange, Binance token BNB, turned green as the company announced its Brazilian expansion with two offices located in São Paulo and Rio De Janeiro.

BNB, the fifth-largest cryptocurrency by market capitalization, displays some optimism this morning by going up 2.1% in the last 24 hours. Additionally, this positive trend, it has also been showing an upward trend in the past seven days alone, climbing over 5.5%.

In addition, statistics from CoinGecko show that the token is currently trading at $291.75. Its current market cap is $47.07 billion, increasing by 1.82% over the last 24 hours, and 24 hours trading volume is also up by over 3,72%, to $1.22 billion, according to the Nomics data.

Though crypto-assets ended the last week in the negative territory, many coins have started this week on a positive note – at least for now. Including Polygon in the lead with a 7.5% gain over the past 24 hours, XRP with a 5.5% increase, Solana with 3.9%, and Uniswap with 5.3%.

Binance Two New Offices

On October 3rd, Binance announced on Twitter :

“#Binance opens two offices in Brazil in a move to expand in the country and to grow crypto adoption in Latin America.”

After Changpeng Zhao (CZ), the CEO of Binance, visited Brazil in March for an exploratory tour to further extend his company into the region, it seems that the exchange has met its objective – by fulfilling CZ’s promise.

Binance claimed in the announcement post that the team working on their planned expansion into Brazil has more than quadrupled since CZ’s visited the country. 

However, more than 150 personnel-up from 60- will be supported by these new offices across the country; most of these new hires were set to take customer service and support positions. 

Furthermore, the exchange revealed that they are working to acquire a license from the Brazilian Central Bank in order to operate as a Payments Institution and are now waiting for approval from BC. It comes after they announced their acquisition of a brokerage company, “Sim;paul, which has this license.”

According to research by Triple A, cryptocurrency is becoming more and more commonplace in Brazil, to the point that big exchanges are now looking to Brazil as a crucial market for cryptocurrency services. 

Binance also claims that “Brazil is among the company’s top 10 markets in the world and is the largest in Latin America.”

Related Reading I Kim Kardashian Faces Charges From the SEC Over EthereumMax Promotions

Matt Damon’s Crypto Ad Is In Troubled Waters

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Crypto detractors amidst the market crash have now focused their attention on Hollywood actor Matt Damon for his memorable TV ad where he was seen encouraging people to invest in digital currency.

In the 60-second clip, Damon hailed people’s investment in cryptocurrency as the next great human endeavor and compared it to the historic Wright Brothers who invented human flight or astronauts’ landing on the moon.

The commercial had Damon boasting that “Fortune favors the brave,” while strolling down a minimalist hallway straight out of a science fiction movie, with visions of some of the world’s great explorers appearing on each side.

The promotion which got a positive response from crypto enthusiasts was also trolled on Twitter by critics who accused him of selling regular people with “wholly artificial assets.”

Things haven’t changed as trolls have returned, this time with renewed vigor! One ‘investigative reporter’ Ken Klippenstein called out Damon for probably earning millions to make the ad. Klippenstein tweeted in January:

“Matt Damon doing a crypto ad. Jesus Christ does he not have enough money already pic.”

Another by the name of Jon Schwarz, pointed out how much money people would potentially lose if they were moved by Damon’s TV ad, which premiered in late October.

“If you bought $1000 of a bitcoin ETF when Matt Damon’s “Fortune Favors the Brave!” crypto ad premiered on October 28 last year, you would now have $554.”

Damon’s crypto ad received the most attention

The Bourne Identity star isn’t alone to throw their weight behind the digital currency. Celebrities like Kim Kardashian, Stephen Curry, Tom Brady, Spike Lee, Alec Baldwin, and Neil Patrick Harris, are among many to extend support for the asset class.

But it was Damon’s widely promoted “Fortune favors the brave” ad that received the most attention, even sparking discussion on the deepening connection between celebrity and virtual currency.

A few critics on social media were wondering if Damon feels bad about pushing cryptocurrency. One person tweeted that the crypto crash isn’t funny because some people might have been seriously hurt by following Damon’s lead.

Others speculated that maybe Damon doesn’t feel that bad.

“Matt Damon isn’t sweating that Super Bowl ad urging you to invest in crypto — after all, Matt got paid in good old-fashioned U.S. dollars,” said one Twitter user.

Floyd Mayweather Enters the Ring With His NFT Project – Ready for Another Ko?

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Floyd Mayweather’s NFT and crypto track record appear to be the polar opposite of his boxing career.

Floyd’s performance in the crypto market may be familiar to those who follow the crypto space and the celebrity endorsements and intervention in the industry.

If his prior results in crypto and similar areas are any indication, the renowned Boxer may find himself in yet another unpleasant brush with financial regulators.

The beef between Mayweather and SEC

Mayweather and cryptocurrency initially crossed paths in 2018, when the boxer was involved in the marketing of Centra Tech’s initial coin offering, or ICO.

The initiative later proved out to be a hoax, and Mayweather was fined $100,000 for his involvement. Despite the fact that many saw this as a low punishment for him as the creator of the crypto debit card fraud, Centra Tech Sam Sharma was sentenced to eight years in jail.

The Boxer then took part in additional questionable ICO campaigns such as HubiiNetwork and STOXX in a similar time zone. Floyd’s involvement benefited him nearly $300,000 to market the ventures, according to the SEC investigation.

Then came the struggle between the commission and Floyd, in which the regulatory body stayed tough on the world-famous boxer.

Mayweather’s $300,000 profit was initially seized by the SEC, which then issued a $300,000 punishment and provided a $14,775 interest refund. Finally, the Boxer had to pay $614,775 to the SEC.

He was also barred from advertising any securities for three years by the Securities and Exchange Commission. So, in the end, the famed mister I never lose, lost the duel with the regulatory authorities by a score of 3-0.

Mayweather’s mayweverse

Mayweather is back at NFT with mayverse. The NFTs will bear Floyd’s picture and will offer different utilities and prizes to holders, depending on the item’s rarity. At the time of writing, nothing is known about the project beyond that it will include a boxing gym in the Metaverse.

The debut date and pricing are yet to be announced, but the initiative is generating a lot of buzz. The project’s dedicated Discord channel already has over 5,000 members.