Kim Kardashian made quite some noise this year. This, however, wasn’t part of showbiz. The reality star was in the headlines for endorsing a crypto. While celebrity endorsements are common, the repercussions of her promotions were louder than the crypto ad itself.
Kardashian was joined by prominent boxer Floyd Mayweather Jr. in legal trouble for endorsing EthereumMax. Just last month, Kardashian was hit with a lawsuit. Recent reports point out that the aforementioned parties had won a tentative court ruling dismissing a lawsuit accusing them of defrauding investors through EthereumMax.
US District Judge Michael Fitzgerald stated in a written ruling on Monday that in his “tentative view” the investors’ attorneys are “trying to act like” the US Securities and Exchange Commission, but “haven’t chosen to view the tokens as a security.” In addition to this, they haven’t employed a typical securities fraud claim in this particular case.
Several cryptocurrencies have been dealing with the “securities” label. Amidst all of this, Judge Fitzgerald pointed out how Kim Kardashian or Floyd Mayweather Jr. did not bother labeling the endorsed token as a security.
Furthermore, the judge noted that a final written order would soon be issued.
Has Kim Kardashian’s crypto lawsuit instilled fear among celebrities?
Back in October, Kardashian made the decision to pay a $1.26 million fine and even made the commitment to refrain from promoting cryptocurrencies for the ensuing three years. The recent settlement with Kim Kardashian and the bear market both appear to have discouraged celebrities from endorsing cryptocurrency.
It should be highlighted that Kardashian’s settlement represented the largest fine the SEC had ever assessed against a public figure. Before this, the fines for Steven Seagal, DJ Khaled, and even Floyd Mayweather Jr.’s cryptocurrency advertising were considerably lower.
With the crypto industry booming, several ill-doers have veered in to make easy money. Therefore, the community is urged to do their own research before pouring their funds into any project.