Feb 23, 2023
Celebrities Fight to Dismiss Allegations of EthereumMax Scheme
Celebrities such as Kim Kardashian, Floyd Mayweather, and others are looking to convince a judge to dismiss the latest attempt to hold them liable for allegedly promoting EthereumMax (EMAX) without proper disclosure.
The celebrities are asking a California federal judge to dismiss a second amended complaint from EthereumMax investors that was filed in December 2022. The defendants argue that the renewed allegations still revolve around the same theory that was previously dismissed by the court.
The investors are claiming that the EthereumMax team worked with celebrities to sell EMAX tokens to investors in a “pump-and-dump” scheme. The defendants, however, argue that the theory of celebrities advertising the EMAX tokens to artificially pump its price was already rejected by the court since the tokens do not have any value apart from what the market is willing to pay for.
The motion to dismiss also suggests that the investors’ new theory is that they held onto EMAX due to misrepresentations from the celebrities. The motion to dismiss argues, however, that the investors “suffered no injury from merely holding onto the tokens.”
Kardashian has already been fined once because of EthereumMax promotions on social media. On Oct. 3, 2022, the American socialite reached a $1.26 million settlement with the United States Securities and Exchange Commission (SEC) after failing to disclose that she received a $250,000 payment to promote the crypto project.
In response to this, the SEC has recently issued a warning to celebrities who promote crypto. On Feb. 17, the SEC reminded stars that the law requires them to disclose how much they are getting paid and from whom when promoting investment in securities.
The use of NFTs and other crypto-based promotions has become increasingly popular among celebrities, especially as the web3 space continues to grow. However, many celebrities are not aware of the legal implications that come with these promotions.
The SEC’s warning serves as an important reminder that celebrities must be aware of their legal obligations when engaging in NFT marketing and other crypto-based activities. It is important for celebrities to understand the legal requirements of selling NFTs or promoting other crypto-based activities, as failure to do so could result in serious legal consequences.
NFTs have become a popular way for celebrities to promote themselves and their projects. Many celebrities are using NFTs to offer exclusive digital art, music, and other collectibles to their fans. This has led to a surge in NFT marketing agencies that specialize in helping celebrities promote their projects through NFTs.
These agencies can help celebrities strategize their NFT promotions, create marketing campaigns, and even design custom NFTs. They can also help with Twitter NFT marketing, as Twitter has become an increasingly popular platform for NFT promotion.
The use of NFTs and other crypto-based promotions by celebrities is a growing trend, and it is important for celebrities to ensure that they are following the law when engaging in these activities. With the help of a web3 agency, celebrities can ensure that their NFT promotions are compliant with the law and maximize the potential of their campaigns.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.