Kim Kardashian and Floyd Mayweather’s cryptocurrency fraud refuted in court

American model and entrepreneur Kim Kardashian and boxer Floyd Mayweather Jr. have waited for a preliminary court decision to dismiss a lawsuit filed by Ethereum Max investors, who accused them of cryptocurrency fraud. In January, a New York resident sued Kardashian and Mayweather, accusing them of promoting the EMAX token and intending to sell it when the cryptocurrency rate rises.

On Monday, November 7, U.S. District Judge Michael Fitzgerald noted in his preliminary ruling that the investors' lawyers are trying to act like the U.S. Securities and Exchange Commission (SEC), while not considering the tokens to be securities. The judge explained that the plaintiffs did not file a standard securities fraud lawsuit, and «celebrities did not call tokens securities for obvious reasons.»

The final court ruling will be issued later. Kardashian’s lawyer declined to comment until the final decision in the case is made. It should be noted that in October, the SEC also filed charges against Kardashian. The agency claims that the actress did not report receiving $ 250,000 for an advertising post about EMAX tokens on her Instagram. The star then paid a $ 1.26 million fine to settle the case and even agreed to refrain from advertising any digital assets for three years.

In August, the consumer protection group Truth in Advertising criticized celebrities who advertise NFTs and do not warn about the risks of investing in crypto assets. The activists then sent letters to the stars urging them to immediately disclose any material ties they have with NFT companies or brands.