- Kim Kardashian, and Floyd Mayweather have implied winning the EMAX lawsuit.
- The judge remarked the lawyers acted like the Securities and Exchange Commission.
- Recently Kardashian paid $1.26 million to settle the SEC’s allegation of glorifying EMAX tokens.
Kim Kardashian and Floyd Mayweather Jr. hinted at winning a lawsuit alleging them of defrauding EthereumMax (EMAX) investors in a provisional court verdict. According to a January complaint, investors alleged that they paid “inflated prices” for blockchain-based digital assets because the reality-tv personality and ex-boxing champion glorified EMAX tokens.
The provisional judgment comes less than a month after the Securities and Exchange Commission (SEC) charged Kardashian with failing to disclose that she was paid $250,000 to post about tokens on her Instagram handle. The celebrity agreed to pay $1.26 million to resolve claims that she violated US law by promoting EMAX tokens.
According to a report by Bloomberg, on November 7, U.S. District Judge Michael Fitzgerald issued a written ruling expressing a “tentative opinion” that attorneys representing EMAX investors tried to act like the SEC, but “haven’t decided to consider the tokens as a security.” He also stated that the defendants in the case had not asserted a traditional securities fraud allegation.
Judge Fitzgerald stated that a formal written ruling will be issued later, but that the accused celebrities did not “identify the tokens as a security for obvious reasons.” Kardashian’s and Mayweather’s lawyers have declined to comment ahead of the final decision.
Kardashian got into the issue after posting on Instagram in June 2021 stating:
Are you guys into crypto? This is not financial advice, but rather an information from my pals on the Ethereum Max token!
The token rose following her message to her over 200 million followers, but has subsequently collapsed back to its pre-tweet level, like a “pump and dump.”
The recent court decision on bitcoin marketing brings the SEC’s regulation efforts back into the limelight. The regulator has been involved in a long-running legal struggle with Ripple executives regarding the token’s classification as a security.
The court win for Kim Kardashian and other celebrity crypto endorsers emphasizes the need of understanding cryptocurrency as security. Following the hearing, the SEC may step up its attempts to have the last say.
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