Plaintiffs have stood up against these media titans, but anyone having had the misfortune of being compelled to file a cryptocurrency fraud lawsuit can tell you that the process can be a hard row to hoe. Many plaintiffs face a high wire act convincing a jury their case is meritorious. Some complainants soon realize they may be in over their heads and become shocked during litigation over the large volume of personal data they must turn over to the lawyers of the parties they are suing.
Hiring the right lawyer who is adept in foiling attempts to violate your privacy rights isn’t a matter that comes to mind for most when seeking legal counsel from a lawyer. But it remains among the most vital considerations when finding experienced counsel to bring your matter before a court of law. Let’s look at the crypto fraud allegations and expected defenses to throw the plaintiffs for a loop and defeat the lawsuit.
The plaintiffs, Finbold reported, are suing the defendants for causing the cryptocurrency tokens, an Etherum knockoff, to rise so that they could sell off their portion of the Float for a money profit. Gizmodo says the plaintiffs accuse defendants of a “pump and dump” cryptocurrency scheme in the cryptocurrency world. Investors sell their shares to make a significant profit after scheming to skyrocket in value.
In the lawsuit, Floyd Mayweather ultimately promoted the crypto coins by wearing boxing shorts during an exhibition match against Logan Paul with the EthereumMax URL on them. Mayweather was seen promoting the token at the “Bitcoin 2021” conference in Miami, Florida. Mayweather had a previous embarrassing incident. The Securities and Exchange Commission charged him in 2017 for failing to disclose they paid him $100 thousand to promote Centra Tech’s 2017 coin offering.
The lawsuit Pierce tweeted to his four million followers claiming that he had made money from the token.
The plaintiffs’ claim the cryptocurrency coin had a dramatic rise of 632% in value from the three celebrities, Kim Kardashian, Floyd Mayweather, and Pierce promoted EthereumMax coins.
The lawsuit alleges the creators of the coins sold off their shares before a price drop by their wallet’s activity. Huegrich claims the executives obscured their control over the tokens and what percentage was available for public trading during the May to June timeline to raise the price and sell their own portions of EMAX at a profit. They pumped the price by driving interest in the token through celebrity endorsements, including Kardashian, Mayweather Jr., and Pierce. “In plain terms, EthereumMax’s entire business model relies on using constant marketing and promotional activities, often from ‘trusted’ celebrity endorsements.”
The plaintiffs allege the day after Kim Kardashian used Instagram Stories to talk about EthereumMax to her 250 million followers, the shares fell 98%.
A survey by Morning Consult shows of the survey respondents who heard about Kim Kardashian’s Instagram post about 19% invested in EthereumMax.
The lawsuit has named reality star Kim Kardashian, boxer Floyd Mayweather Jr., and former NBA player Paul Pierce. Plaintiff Ryan Huegrich brought the suit to all investors who purchased EthereumMax, or EMAX, tokens between May 14 and June 17 of 2021. The case alleges EthereumMax executives and promoters made false or misleading statements through social media advertisements and other promotional efforts since their fans believed their absolute power. Huegrich claims the executives obscured their control over the tokens, as well as what percentage were available for public trading during the May to June timeline to pump and dump.
“In plain terms, EthereumMax’s entire business model relies on using constant marketing and promotional activities, often from “trusted” celebrities, to dupe potential investors into trusting the financial opportunities available with EMAX Tokens,” said the complaint. The U.K.’s Financial Conduct Authority chair, Charles Randell, expressed his concern over Kardashian’s EMAX promotions in September 2021.
By August 1, transaction volume had plummeted by more than 99% from its initial capital. It has not recovered since then. Plaintiffs claimed that “EthereumMax’s entire business model relies on using constant marketing and promotional activities, often from ‘trusted’ celebrities, to dupe potential investors into trusting the financial opportunities available with EMAX Tokens.” EthereumMax’s executives “touted the prospects of the company and the ability for investors to make significant returns due to the favorable ‘tokenomics’ of the EMAX Tokens, the suit said. They touted the prospects of the company and the ability for investors to make significant returns due to the favorable ‘tokenomics’ of the EMAX Tokens,” the suit said.
“In truth, defendants marketed the EMAX tokens to investors so that they could sell their portion of the float for a profit.” EthereumMax dismissed the allegations in a statement posted on the company’s Twitter account, “The deceptive narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project. We dispute the allegations and look forward to the truth coming out.”
John Shearer/WireImage, A group of cryptocurrency investors who lost dearly on a novel digital coin in 2021, has launched a lawsuit against the token’s issuing company and its celebrity promoters, including Kim Kardashian, boxing champion Floyd Mayweather Jr, and basketball player Pierce, alleging a “pump and dump” scheme.
A class-action suit filed in the U.S. District Court for the Central District of California on January 7 claimed that executives of the cryptocurrency company EthereumMax, in collaboration with Kardashian, Mayweather Jr., and Pierce, sought to enrich themselves. The case alleges EthereumMax executives and promoters made false or misleading statements through social media advertisements and other promotional efforts. The executives obscured their control over the tokens and what percentage were available for public trading during the May to June timeline to pump the price and sell their own portions of EMAX.
Defendants’ assert improper promotional activities generated the trading volume needed for all the Defendants to offload their EMAX Tokens onto unsuspecting investors. Plaintiff and Class members were buying the inappropriately promoted EMAX Tokens, Defendants were able to, and did, sell their EMAX Tokens during the Relevant Period for substantial profits.
The rise did not last long, and EthereumMax began to deflate immediately after Kardashian’s post, the complaint reads. “On July 15, the price of the EMAX Token hit its all-time low: $0.000000017 per unit, a 98% drop. Neither Mayweather, Kardashian, nor Pierce have publicly responded to the lawsuit. But don’t expect these tycoons to take this sitting down.
We anticipate the defense teams to conduct opposition research and muddy the waters up using Subrosa and fishing expeditions to bring in irrelevant evidence against their accusers, including private issues with no bearing on the case.
The Securities Commission accuses the two Centra Tech founders arrested for securities fraud and wire fraud of touting nonexistent relationships with well-known financial institutions. Because of this, under vicarious liability and conspiracy theories, expect a vigorous defense.
Celebrities have promoted cryptocurrency coins for some time, and some even created their coins. But this time, they’ll need a robust defense if they want to get out of this dilemma, including digging up private data about their accusers.
At Ehline Law, we strive to protect private information from the first moment you take ten to tell us about your case confidentially. Our circumscribed file management system is calculated to safeguard your private information to prevent compromised data from being leaked to the other side.
Our top personal injury litigators also have vast know-how seeking motions to limit discovery of irrelevant information by the other side, so only matters relevant to your case are allowed into evidence.
We will rebuff the efforts of the defense to bring in overly broad evidence. We will consistently put on our boxing gloves to keep you fully informed. We will talk about potential private exposure matters in advance to protect you from any potential embarrassment as you seek justice.
Your privacy is important. Put, if you are left with no choice but to file a personal injury claim, your dirty laundry isn’t an automatically open game. You don’t automatically surrender your sensitive information privacy rights.
At Ehline Law, our veteran personal injury lawyers in Los Angels will continuously work to safeguard you with in-camera reviews and motions to suppress the damaging information lawsuit process. Contact our class action lawsuit attorneys today to learn more about your potential options in a serious personal injury case at (213) 596-9642.