Accused of cryptocurrency scams, Kim Kardashian, Paul Pierce and Floyd Mayweather were reportedly cleared by a federal judge recently. However, the plaintiffs’ lawyer does not admit defeat and promises to provide evidence regarding the damage caused by their promotion of EthereumMax. A file is still closed?
A tentative decision for cryptocurrency developers
Tuesday, November 8, Bloomberg relayed a decision “ provisional by US District Judge Michael Fitzgerald exonerating the 3 celebrities who promoted the EthereumMax (EMAX) cryptocurrency. In the dock are boxer Floyd Mayweather, NBA basketball player Paul Pierce and reality TV star Kim Kardashian.
For Mr. Fitzgerald, this decision in their favor would come from:
- interference by plaintiff investor attorneys in SEC business;
- the lack of consideration of EMAX cryptocurrencies as a security;
- and also the lack of a standard complaint suitable for securities fraud.
In parallel, PYMNTS clarified that the defendants didn’t care to qualify the tokens as securities for the obvious reasons “.
Lessons to learn?
As a reminder, the plaintiffs filed a lawsuit against the Kardashian-Pierce-Mayweather trio after finding they were promoting EthereumMax to drive up its price last January. By this time, the legendary boxer had worn out his boxing singlets, and the reality TV star showered his 250 million Instagram fans with EMAX publicity. Still, it sounds like a pump-and-dump scam, if you look at crypto jargon.
As for Kim Kardashian, the Securities and Exchange Commission of the United States was able to impose the payment of a colossal fine on him. As a corollary, she had to sign a check for $1.26 million for receiving $250,000 from EthereumMax.
In short, this case reminds us of a decision taken by a South Korean judge on the case of a collaborator of Do Kwon. The observation of a law void concerning cryptocurrencies would have effectively prompted this magistrate to order the release of the accused. The SEC, recently corrected by elected Republicans, seems at the moment very straddling the offenses of crypto-enthusiasts. It must nevertheless be recognized that the United States is slow in implementing crypto regulations.
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