Kim Kardashian, Floyd Mayweather face fresh legal trouble over promotions

Kim Kardashian and Floyd Mayweather were once again caught in the middle of a legal fight after a California federal judge allowed part of a high-profile cryptocurrency case to move forward. 

The decision gave investors in New York, California, Florida, and New Jersey the green light to take their claims to court over a token promoted by several celebrities in 2021.

U.S. District Judge Michael Fitzgerald ruled that these state-level cases could continue for people who bought the token between May and June 2021. However, he didn’t approve a nationwide case, explaining that it would be too complicated to apply state laws across the entire country and prove all claims in the same way.

The legal action targets Kardashian, Mayweather, and former basketball player Paul Pierce, along with people linked to creating the token, including EMAX Holdings, co-founder Giovanni Perone, and alleged consultant Jona Rechnitz. 

Back in 2021, Kanye West’s ex wife posted about the token on Instagram, reaching nearly 200 million followers.

The cryptocurrency have been marketed as “culture token” and skyrocketed in value by more than 116,000 percent in a single week after celebrity endorsements. 

That rise did not last, as its value later fell by over 99 percent. Investors claimed it was part of a scheme designed to inflate the price before selling off.

The original lawsuit was dismissed by Judge Fitzgerald in December 2022, who said buyers were expected to do their own research before investing. Investors came back with a new filing seven months later, leading to the current ruling.

In another case, Kim Kardashian agreed in October 2022 to pay $1.26 million to settle charges from the U.S. Securities and Exchange Commission for not disclosing a $250,000 payment she received to promote the token.