Jan 12, 2022 - Economy

Kim Kardashian sued for alleged crypto pump and dump scheme

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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