Judge Allows State-Level Class Actions Against EthereumMax Promoters to Proceed

Key Points

1. The lawsuit involves investors who bought EMAX between May and June 2021, a period when the token's price surged 116,000% before crashing over 99%.

2. Judge Michael Fitzgerald ruled that state-level class actions meet federal procedural standards but rejected a nationwide class due to jurisdictional risks.

3. High-profile promoters like Kim Kardashian, Floyd Mayweather, and Paul Pierce are targeted, along with individuals linked to EMAX's creation, such as co-founder Giovanni Perone.

4. Kardashian settled with the SEC for $1.2 million in 2022 for failing to disclose a $250,000 payment to promote EMAX, while Paul Pierce was fined $1.4 million in 2023 for similar violations.

5. EMAX, marketed as a 'culture token,' gained viral attention in 2021 due to celebrity endorsements but faced regulatory scrutiny and investor lawsuits after its price collapse.