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Kim Kardashian and other celebs named in EthereumMax pump-and-dump scam

Anyone who follows the cryptocurrency scene should be all too familiar with pump-and-dump scams, where influencers often inflate the value of a coin that they have an interest in and cash out before the price of the coin falls.

The most notable pump-and-dump involved Faze Clan last year, but now Kim Kardashian, Floyd Mayweather Jr, Paul Pierce and a few other celebrities have been named as defendants in a class action lawsuit for allegedly promoting a cryptocurrency called EthereumMax (EMAX).

According to Finbold, which first reported on this story earlier in the week, this Ethereum knockoff saw its price soar last year on the back of being promoted by Kardashian and others before selling their portion of the “float for a profit”.

“The investors acquired EMAX tokens between May 14, 2021, and June 27, 2021, and the complaint was placed on classaction.org, which serves as a consumer resource for class action litigation,” the publication noted.

While Kardashian is perhaps the most high profile celebrity named in the lawsuit, some digging by Gizmodo finds that Mayweather Jr and Pierce are potentially worse perpetrators.

This as the lawsuit says the price of EMAX rose 632 percent in value following social media posts promoting it by Mayweather Jr and Pierce, with the former even spotted online wearing boxing shorts with the coin’s URL during his exhibition match with Logan Paul last year.

That said, Kardashian is far from innocent, having posting about the coin on her Instagram Stories and telling her followers that she heard about from friends before sharing links to the EthereumMax website.

It is unclear how much weight the lawsuit holds, but given the rise in pump-and-dump scams, as well as the newly minted cryptocurrencies every day, it is perhaps best to take a cautious approach when investing.

[Image – Photo by Maxim Hopman on Unsplash]

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