Kim Kardashian’s Failed Attempt to Dismiss Crypto Lawsuit

Kim Kardashian’s plea to have a cryptocurrency lawsuit against her dismissed has been denied. The suit alleges that she misled investors with exaggerated claims when promoting EthereumMax. On Tuesday, US District Judge Michael Fitzgerald in Los Angeles rejected the arguments put forth by Kardashian’s lawyers.

The investors’ claims included a post in which she suggested that EMAX tokens would be accepted as payment for table reservations at certain nightclubs. Judge Fitzgerald deemed the post to be false and also concluded that another post implying a limited supply of EMAX tokens was misleading.

Previously, Fitzgerald had dismissed the case due to inconsistencies, but in his 84-page ruling this week, he acknowledged that the investors had made the necessary changes to their complaint.

The judge cautioned that they would be allowed to make one more amendment, and failure to do so would result in the claims being permanently dismissed. In addition to pursuing legal action against celebrity promoters, the investors also filed lawsuits against EMAX co-founders and consultants.

SEC Finds Kim Kardashian Guilty of Concealing Payment Information

In October, the US Securities and Exchange Commission (SEC) announced that it had reached a settlement agreement with Kim Kardashian. The reality star had to pay $1.26 million to resolve the charges of violating US regulations by promoting EMAX tokens. The SEC accused her of failing to disclose that she was paid $250,000 for posting about the tokens.

Kardashian settled the case without admitting or denying the allegations. She also agreed to abstain from promoting any digital assets for three years. Under the law, endorsers of securities, including cryptocurrencies and stocks, are obligated to provide details of their financial compensation.

Boxing icon Floyd Mayweather Jr. was in a better legal position, as the judge found his statements regarding the potential growth of the EMAX token to be innocuous. Mayweather could not be sued for expressing his personal “belief” at a Bitcoin conference in 2021, as this was considered to be an exaggeration of opinion and is not legally actionable.

However, investors who allege that they paid overly high prices for their blockchain-based digital assets have been granted the opportunity to resubmit their accusations. It is said that Mayweather neglected to disclose his financial compensation for endorsing EMAX.

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