- Kim Kardashian, NBA legend Paul Pierce, and retired boxer Floyd Mayweather Jr. were accused of endorsing EMAX tokens
- Kardashian paid a settlement of $1.26 million to the SEC to settle the charges
It appears Kim Kardashian will win an investor lawsuit against her and a few other celebrities for promoting the cryptocurrency EthereumMax (EMAX). On Monday, a judge tentatively dismissed the case, Bloomberg wrote.
Kim Kardashian, NBA legend Paul Pierce, and retired boxer Floyd Mayweather Jr. were accused of endorsing EMAX tokens in a January filing. Their promotion resulted in investors paying inflated prices for them.
Kim paid settlement of $1.26m
Last month, Kardashian paid a settlement of $1.26 million to the SEC to settle the charges for hyping EMAX. Allegedly, she received $250,000 to post promotional content, which she failed to disclose.
Tokens not considered a security
On Monday, US District Judge in LA Michael Fitzgerald said the investors’ lawyers were simulating the activity of the US Securities and Exchange Commission, but did not consider the tokens a security because they did not present a standard claim for securities fraud.
According to Judge Fitzgerald, the defendants in the case with EMAX did not “care to label the tokens as a security for obvious reasons.” The case has been dismissed pending a final written order.
