A California judge has ruled that state-level lawsuits against celebrities who promoted the EthereumMax (EMAX) token can proceed, enabling investors to pursue legal action for 2021 investment losses. The decision opens pathways for affected individuals to seek restitution through courts in New York, California, and Florida.
The lawsuits target high-profile promoters including Kim Kardashian, Floyd Mayweather, and Paul Pierce, who endorsed EMAX via social media during its peak. Investors who purchased the token between May and June 2021 – coinciding with the celebrity promotion campaigns – are potentially eligible to join these suits.
This case intensifies regulatory focus on celebrity cryptocurrency endorsements, underscored by Kardashian’s historical settlement with the SEC for failing to disclose payment received for promoting EMAX. The token experienced extreme price volatility during the promotional period, surging on celebrity hype before declining sharply.
The ruling represents a significant step toward accountability for promotional practices in digital assets, highlighting potential legal consequences for influencers promoting speculative crypto tokens without adequate disclosures to investors.