On Wednesday, a federal judge dismissed a proposed suit by the investors against the founders of cryptocurrency EthereumMax and celebrity endorsers such as Kim Kardashian and boxer Floyd Mayweather Jr. for their advertising on social media about cryptocurrency.
Investors who purchased EMAX tokens claimed they faced losses after taking the word of celebrities about the crypto’s value. The case declares that the defendants falsely engaged in a scheme to increase the value of the EMAX tokens.
Judge Michael Fitzgerald, from the Central District of California, had written that he identified that the suit’s declarations increased the legitimate worries regarding “celebrities” ability to convince millions of inattentive followers to purchase snake oil with uncommon ease and reach.
He added that while the uncertainty of law limits those advertisers, it also awaits the investors to behave reasonably before basing their bets on the moment’s zeitgeist.
The judge found that the statements of the plaintiffs’ were inadequately backed, especially “provided the enhanced pleading standards” for scam claims, under his ruling in the District Court of the United States in Los Angeles.
The co-founders of EthereumMax, Steve Gentile and Giovanni Perone, and Justin French, a consultant, and developer for the cryptocurrency, were also implicated in the case along with Kardashian, Mayweather, and former Boston Celtics player Paul Pierce, according to court filings.
