(CNN) — Reality TV star Kim Kardashian and boxing legend Floyd Mayweather Jr. are facing a lawsuit alleging the celebrities misled investors in their promotion of a cryptocurrency token. cryptocurrency.
The lawsuit, filed on January 7 in Los Angeles federal court, claims that celebrities promoted tokens sold by EthereumMax, or EMAX, in order to increase their price and make a profit “at the expense of their fans and investors.”
“Company executives, in collaboration with various celebrity promoters… made false or misleading statements about EthereumMax through social media advertisements and other promotional activities,” the lawsuit states.
According to the indictment, Kardashian promoted EthereumMax in a June 2021 post on Instagram, when she had 250 million followers.
“Do you like crypto?” he wrote in the post, followed by the warning that “this is not financial advice” but that he wanted to share “what my friends just told me” about EthereumMax tokens. He included the hashtag #AD to show that the post was a paid advertisement, according to the lawsuit.
Mayweather, meanwhile, promoted EthereumMax in his boxing trunks during a highly-viewed fight with YouTube star Logan Paul in June, among other occasions.
Representatives for Kardashian and Mayweather did not immediately respond to requests for comment.
Cryptocurrency firm EthereumMax was also named in the lawsuit.
“The misleading narrative associated with the recent allegations is riddled with misinformation about the EthereumMax project,” EthereumMax said in a statement. “We discuss the allegations and hope that the truth will come to light.”
The complaint, filed by a New York resident who purchased EMAX tokens and lost money, is proposed as a class action lawsuit for anyone who purchased EMAX tokens from mid-May through the end of June 2021.
The case seeks restitution and return of benefits from the defendants.