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Jan 13, 2022 - Economy & Business

Kim Kardashian sued for alleged crypto pump and dump scheme

Hope King
Photo of Kim Kardashian

Kim Kardashian in the East Room of the White House, June 13, 2019. Photo: Saul Loeb/AFP via Getty Images

Kim Kardashian has been accused of taking part in a "pump and dump" crypto scheme.

Catch up quick: In a class-action lawsuit, a group of investors claims that Kardashian, Floyd Mayweather, NBA star Paul Pierce and others hyped EthereumMax tokens on social media to lure new buyers.

  • The filing alleges the "improper promotional activities" created the kind of demand that enabled the defendants named in the suit to sell their tokens for "substantial profits."
  • Within a month of Kardashian’s Instagram post on June 14, 2021, specifically, the token’s price fell 98%, the lawsuit says.
  • Representatives for Kardashian, Mayweather, Pierce and the company did not immediately respond to requests for comment.

The big picture: Celebrities have rushed to endorse or invest in crypto as interest has exploded.

  • About $30 billion flooded into the digital asset category last year — almost four times the previous record of $8 billion in 2018.
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