EthereumMax (EMax) is both a type of cryptocurrency and the name of the company that’s the first defendant in this class action. The complaint alleges that the company, three individuals it calls the executive defendants, and three celebrity promotors misled investors when promoting EMax in order to sell their own tokens at an inflated price. In short, it suggests that they may have engaged in a pump and dump scheme.
The class for this action is all persons who, between May 14, 2021 and June 27, 2021, bought EthereumMax’s EMax tokens and were subsequently damaged thereby.
The complaint calls EMax tokens “blockchain-based digital assets known as ‘ERC-20 tokens’ that are created using the Ethereum blockchain. … The EMax Tokens were primarily traded against Ether, the native currency of the Ethereum blockchain network on Uniswap and other decentralized exchanges that allow anyone to list a token.” It has no connection with the cryptocurrency Ethereum.
It was launched on May 14, 2021 at a price of $0.00000005875, and, the complaint claims, without a whitepaper, a document that normally accompanies a cryptocurrency, giving information about the concept behind it and plans for how it will grow and succeed.
The company did release a whitepaper later, in October 2021. The complaint quotes it as saying that its “expertise in marketing strategy and managing relationships” was key to its successful promotion. The complaint alleges, “In plain terms, EthereumMax’s entire business model relies on using constant marketing and promotional activities, often from ‘trusted’ celebrities, to dup potential investors into trusting the financial opportunities available with EMax tokens.”
The three celebrities—Kim Kardashian, Floyd Mayweather, and Paul Pierce—promoted EMax at its launch. The complaint details some of these promotions, after which, it says, the EMax trading volume “exploded.” The complaint alleges that none of the celebrities made proper promotional disclosures when making their endorsements. It claims that Mayweather had been “fined previously over improper cryptocurrency promotion” and that he violated his settlement with the Securities and Exchange Commission when he promoted EMax.
EMax rose 1,370% to a high of $0.000000863 at the end of May, with a transacrtion volume of over $100 million, then began to fall. On July 15, the complaint alleges, it hit a low of $0.000000017, “a 98% drop from which it has not been able to recover. On August 1, its transaction volume plummeted to $157,423…”
The complaint alleges, “The Promoter Defendants’ improper promotional activities generated the trading volume needed for all the Defendants to offload their EMax Tokens onto unsuspecting investors.”
Article Type: LawsuitTopic: Investments
Most Recent Case Event
EthereumMax Cryptocurrency Improper Promotions, Inflated Values Complaint
January 19, 2022
EthereumMax (EMax) is both a type of cryptocurrency and the name of the company that’s the first defendant in this class action. The complaint alleges that the company, three individuals it calls the executive defendants, and three celebrity promotors misled investors when promoting EMax in order to sell their own tokens at an inflated price. In short, it suggests that they may have engaged in a pump and dump scheme.
EthereumMax Cryptocurrency Improper Promotions, Inflated Values ComplaintCase Event History
EthereumMax Cryptocurrency Improper Promotions, Inflated Values Complaint
January 19, 2022
EthereumMax (EMax) is both a type of cryptocurrency and the name of the company that’s the first defendant in this class action. The complaint alleges that the company, three individuals it calls the executive defendants, and three celebrity promotors misled investors when promoting EMax in order to sell their own tokens at an inflated price. In short, it suggests that they may have engaged in a pump and dump scheme.
EthereumMax Cryptocurrency Improper Promotions, Inflated Values Complaint