Kim Kardashian and Floyd Mayweather are Likely to Win Crypto Ethereum Max Lawsuit.
A tentative court ruling found Kim Kardashian and Floyd Mayweather Jr to be innocent of scamming EthereumMax investors.The tentative ruling reveals how the judge is likely to rule before the case is heard.
The reality star and ex-boxing champion allegedly hyped blockchain-based digital assets, which caused investors to pay “inflated prices” for them, according to a complaint filed in January.
Bloomberg reports that US District Judge Michael Fitzgerald on Monday issued a tentative decision alleging that attorneys for the disgruntled investors were attempting to mimic the SEC.
Kardashian was accused by the Securities and Exchange Commission of failing to disclose that she had been paid $250,000 to promote tokens on Instagram a month before the tentative ruling was issued.
It was alleged that the celebrity touted EMAX tokens in violation of the US rules, for which she paid $1.26 million.
Kim, who has 333 million Instagram followers, didn’t admit to nor deny the regulator’s allegations despite the hefty settlement.
Last year, celebrities like Kim Kardashian, promoted Ethereum Max—or EMAX—as the world’s second biggest cryptocurrency. However, it does not appear to have any practical applications.
As Fitzgerald reportedly stated, celebrities did not” care to label the tokens” as securities.
Charles Randell, chair of the UK Financial Conduct Authority, referred to Kim’s post as the biggest financial promotion of all time.
The Court Highlighting The Need for Clarity on Crypto Securities
In light of the recent court ruling on cryptocurrency marketing, SEC regulatory efforts are once again in the spotlight.
Over the status of the XRP token as a security, the regulator has been engaged in a long-running legal battle with Ripple executives.
As a result of Kim Kardashian’s court victory, the SEC may double its efforts to have the final say after hearing the ruling . This case highlights the need to give clarity regarding cryptocurrencies as security.