Kim Kardashian, Floyd Mayweather crypto lawsuit dismissed
Reality star Kim Kardashian and boxing legend Floyd Mayweather Jr. promoted the cryptocurrency before selling profits
Kim Kardashian to pay $1.26 million over cryptocurrency charges
Brown Rudnick partner Hailey Lennon analyzes Kardashian's settlement on 'Making Money with Charles Payne.'
A federal judge dismissed a lawsuit against Kim Kardshian and Floyd Mayweather Jr. Wednesday over their alleged roles in a cryptocurrency scheme.
Kardashian, along with the boxing legend and retired basketball player Paul Pierce were just a few of the celebrities involved in the EthereumMax (EMAX) promotion.
"We are pleased with the court’s well-reasoned ruling," Michael Rhodes, lead counsel to Kim Kardashian, told FOX Business.
The class-action suit filed in January claimed celebrity promoters made "false or misleading statements to investors about EthereumMax through social media advertisements and other promotional activities."
KIM KARDASHIAN TO PAY OVER $1M TO SETTLE WITH SEC OVER CRYPTO CHARGES
A federal judge dismissed a cryptocurrency lawsuit Wednesday against Kim Kardashian and Floyd Mayweather Jr. (Getty Images / Getty Images)
Attorneys who represent investors in the EMax case did not immediately respond to FOX Business' request for comment.
EMax co-founders were also included in the class-action complaint, which said EthereumMax was a "speculative digital token created by a mysterious group of cryptocurrency developers."
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While the lawsuit was dismissed, U.S. District Judge Michael Fitzgerald said that the EMax investors could amend their suit and refile the proposed class action.
Kim Kardashian boasted about EMax to her nearly 300 million followers on Instagram June 13, 2021. (Instagram/Kim Kardashian / Fox News)
The "Keeping Up with the Kardashians" star still paid $1.26 million to the U.S. Securities and Exchange Commission in October for her failure to disclose she was paid $250,000 for a social media post about the EMax tokens.
"Are you guys into crypto????" the post on her Instagram story from June 2021 stated. "This is not financial advice but sharing what my friends just told me about the Ethereum Max token!
"A few minutes ago Ethereum Max burned 400 trillion tokens- literally 50% of their admin wallet giving back to the entire E-Max community."
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Mayweather promoted the company during a boxing match with Logan Paul in 2021. Pierce took his EthereumMax promos to Twitter while airing out grievances with ESPN.
".@espn I don’t need you. I got @ethereum_max I made more money with this crypto in the past month then [sic] I did with y’all in a year," Pierce tweeted.
Kim Kardashian did pay more than $1 million in fines to the SEC for failure to disclose she was paid for her EMax ad. (Reuters/Tom Brenner / Reuters Photos)
Kardashian, who recently launched her own private equity firm, is not the first celebrity to be disciplined by the SEC.
In 2018, both Mayweather and music producer DJ Khaled were charged after allegedly failing to disclose how much they were each paid to promote investments in initial coin offerings.
Neither Mayweather nor Khaled confirmed nor refuted the charges but agreed to pay fines that totaled $767,500.
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Fox News Digital's Caroline Thayer contributed to this report.