Kim Kardashian, other celebrities beat EMax crypto investors' lawsuit - Reuters

Welcome to AI Crypto Letter, the go-to source for all things related to digital assets and blockchain technology. Our team of specialists is dedicated to bringing you the newest news, insights, and analysis on the ever-changing world of cryptocurrencies. Whether you're a veteran pro or just beginning your journey, we've got something for you. At AI Crypto Letter, we believe that learning is key to the success of the virtual currencies and distributed ledger industry. That's why we strive to deliver our readers with clear and concise and simple content that covers the most important aspects of this thrilling space. From bitcoin to altcoins, mining to margin trading, we've got you covered. So join us as we discover the exciting world of cryptocurrency and distributed ledger technology as a team! We can't wait to bring you the newest and greatest in this rapidly evolving space.

[1/2] Kim Kardashian attends the Baby2Baby gala at Pacific Design Center in West Hollywood, California, U.S., November 12, 2022. REUTERS/Mario Anzuoni

Dec 7 (Reuters) - A federal judge in California on Wednesday dismissed a lawsuit against reality TV star Kim Kardashian, boxing legend Floyd Mayweather Jr. and others over their role in promoting a cryptocurrency, saying it was not clear that the investors who sued actually saw the promotions.

The lawsuit filed in January claims EthereumMax executives schemed with celebrity promoters to induce investors to buy the EMax token, driving up its price and allowing them to sell their own tokens at a profit.

U.S. District Judge Michael Fitzgerald in Los Angeles said that the investors may amend and refile their proposed class action.

The decision comes as other celebrity promoters face lawsuits from users of the failed cryptocurrency exchange FTX, whose collapse has deepened an ongoing "crypto winter."

Sean Masson, an attorney who represents the investors in the EthereumMax case, said they plan to revise their claims to add "a host of additional facts demonstrating defendants' wrongdoing and liability."

Michael Rhodes, the lead attorney for Kardashian, said the defense is "pleased with the court's well-reasoned ruling."

Attorneys for Mayweather did not immediately respond to a request for comment. Also named in the lawsuit was former National Basketball Association star Paul Pierce.

Kardashian promoted EthereumMax in a June 2021 post on Instagram, and Mayweather wore the company's logo on his boxing trunks during a widely viewed fight, the investors said.

In Wednesday's ruling, Fitzgerald said that investors had failed to show that the executives and promoters schemed to mislead investors, rather than acting in their own self-interest.

The investors' fraud claims failed because they had not stated whether or when they saw the promotions, the judge wrote.

While the investors may revise those claims, Fitzgerald permanently dismissed their claim under California's consumer protection law, which he said applies to tangible goods and services, not "intangible goods" such as cryptocurrency.

Kardashian agreed in October to pay the SEC $1.26 million to settle claims that she failed to disclose she was paid to promote EthereumMax tokens. She did not admit wrongdoing.

The case is In Re: Ethereummax Investor Litigation, No. 22-00163.

Reporting by Jody Godoy in New York Editing by Noeleen Walder and Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles.

Jody Godoy

Thomson Reuters

Jody Godoy reports on banking and securities law. Reach her at

We hope you've enjoyed this edition of AI Crypto Letter. If you have any concerns or feedback, don't hesitate to reach out - we're always happy to connect with our readers. And don't forget to subscribe for our email list to receive the most recent and greatest in cryptocurrency and distributed ledger news straight to your inbox. Until next time, enjoy crypto-ing!