Two celebrities were accused of promoting crypto-currencies to “dupe” potential investors, but the case has been dismissed.
As reported by Bloomberg, TV celebrity Kim Kardashian and boxer Floyd Mayweather Jr were accused in court of tricking their vast fan bases into buying EMAX tokens. However, the lawsuit was dismissed.
The court finds that they did not do so with the intent to “dupe“Potential crypto investors in the purchase and thus increase the price of that crypto.
This is called a “pump and dump“, when the price of a token is increased with artificial methods by disseminating information that widely deceives the community, then a sale of the token begins.
Bloomberg cited documents provided by the PA agency earlier this year, which show that last year the price of EMAX skyrocketed due to promotional campaigns initiated by Kardashian and Mayweather.
U.S. District Judge Michael Fitzgerald in California said that the law expects investors to demonstrate reasonable behavior before investing in the tokens promoted by the aforementioned celebrities.
The court also stated that it remains unclear whether the plaintiffs saw Kardashian and Mayweather specifically promoting the EMAX tokens.
In October, SEC chief Gary Gensler fined Kim Kardashian for not disclosing the $250,000 she received for promoting EMAX, which the SEC considers a security. The celebrity agreed to pay a $1.26 million fine to settle the matter with the regulator.