An apparent pump and dump cryptocurrency scheme has some pretty big names embroiled in it.
Spotted on Engadget, a class-action lawsuit has named boxing champion Floyd Mayweather, reality television star/mogul Kim Kardashian and LeBron James’ favorite victim Paul Pierce as defendants for promoting a cryptocurrency called EthereumMax.
Finbold reports plaintiffs sued the celebrities and unidentified individuals behind the faux Ehtereum cryptocurrency claiming they caused the value to skyrocket so “they could sell their portion of the Float for a profit.” The lawsuit states anyone who has invested in the cryptocurrency between May 14th and June 27th, 2021 is listed as a defendant.
A report from Gizmodo states that claimants involved in the lawsuit are accusing the named and still unidentified defendants of perpetuating a “pump and dump” scheme which is when investors quickly sell off their shares after orchestrating a sharp rise in stock or, in this case, cryptocurrency’s value. The lawsuit noted that the digital coin rose 632 percent after Pierce and Mayweather promoted it. The boxer even had EthereumMax URL on his boxing shorts during his cash grab; oops, we mean exhibition match with Logan Paul, while Pierce tweeted about cryptocurrency.
Kim Kardashian spoke about EthereumMax on her Instagram Stories, telling her followers she allegedly heard about it from her friends while sharing a link to its website. According to a Morning Consult survey, 19 percent of people said they invested in EthereumMax after Kardashian spoke about it. According to the lawsuit, the coin’s value drastically dipped 98 percent after Kardashian plugged it. Digital wallet activity shows the people behind the coin quickly sold off their shares before the price plunged.
Celebrities promoting cryptocurrencies and NFTs are nothing new it’s becoming quite the norm as the wave continues to get bigger. Also, it’s not new for celebs to be allegedly involved in blockchain scams. Mayweather has already been caught up in some crypto shenanigans for failing to report to disclose that he was paid $100,000 to promote Centra Tech’s 2017 initial coin offering to the Securities and Exchange Commission in 2018.
We will be keeping an eye on this lawsuit.
Photo: Cliff Hawkins / Getty