Floyd Mayweather and Kim Kardashian are reportedly facing a lawsuit that accuses them of misleading investors in their promotion of a cryptocurrency token.
Filed on Jan. 7 in Los Angeles federal court, the suit claims the boxing legend and reality TV star touted tokens sold by EthereumMax (EMAX) in order to boost its price and make a profit “at the expense of their followers and investors."
"The company's executives, collaborating with several celebrity promoters ... made false or misleading statements about EthereumMax through social media advertisements and other promotional activities," the lawsuit states, according to Reuters.
Kardashian promoted the crypto in a June 2021 post on Instagram when she had 250 million followers, according to the lawsuit.
"Are you guys into crypto?" she wrote in the post. Followed by the disclaimer, "This is not financial advice." The lawsuit says Kardashian said she wanted to share "what my friends just told me" about the EthereumMax tokens and included the #AD hashtag to show the post was a paid advertisement.
Mayweather promoted EthereumMax on his boxing trunks during a fight with YouTube star Logan Paul in June, among other times.
EMAX was also named in the lawsuit.
"The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project," EthereumMax said in a statement, according to Reuters. "We dispute the allegations and look forward to the truth coming out."
The suit is proposed as a class-action for anyone who bought EthereumMax tokens from mid-May to late June 2021 and seeks restitution and disgorgement of profits by the defendants.