BREAKING: Judge Greenlights State-Level Class Action Lawsuits Against EthereumMax Promoters
Another day, another crypto legal showdown—this time EthereumMax promoters face the music.
Subheading: The hammer drops on alleged pump-and-dump schemers
A California judge just handed retail investors a win, allowing class actions to proceed against the team behind the controversial EthereumMax (EMAX) token. The lawsuits claim celebrity promoters—including some A-list names—duped investors with inflated promises while quietly cashing out.
Subheading: When moonboys meet the long arm of the law
The ruling opens floodgates for state-level cases targeting crypto’s favorite pastime: hype-driven price pumps followed by inevitable crashes. Meanwhile, EMAX’s current trading volume sits at a pathetic fraction of its 2021 peak—because nothing says ‘legit project’ like a 99% drop from all-time highs.
Closing jab: At least the lawyers will get paid in stablecoins.
Judge Says Proposed State Classes Meet Federal Procedural Standards
“Plaintiffs have demonstrated that the proposed state classes comport with the requirements of Federal Rules of Civil Procedure,” the ruling stated.
However, Fitzgerald found that a nationwide class WOULD pose “too high” a risk of applying California and Florida law beyond their jurisdictions, and could lead to individualized questions not suited to collective resolution.
The decision keeps alive investor claims against high-profile figures including Kim Kardashian, Floyd Mayweather, and former NBA star Paul Pierce, all of whom publicly promoted EMAX.
It also targets individuals linked to the token’s creation, such as EMAX Holdings, co-founder Giovanni Perone, and alleged consultant Jona Rechnitz.
Kardashian’s promotion, posted to her Instagram Story in 2021, is believed to have reached up to 200 million users.
EthereumMax, described in its white paper as a “culture token,” became a viral name in crypto circles in mid-2021 due to celebrity endorsements.
Critics accused it of being a “pump and dump” scheme after the rapid price surge was followed by an almost total collapse, leaving retail investors with heavy losses.
8. The Kardashians
The Kardashians were fined by the SEC for failing to disclose payments from the EthereumMax crypto project. pic.twitter.com/2TQYNKk1Np
Fitzgerald had previously dismissed the lawsuit in December 2022, reasoning that buyers were responsible for conducting due diligence before investing.
However, he allowed plaintiffs to refile, which they did seven months later in the same court.
Separately, Kardashian settled with the US Securities and Exchange Commission in October 2022 for $1.2 million over charges she failed to disclose a $250,000 payment to promote the token.
Ex-NBA Star Paul Pierce Fined $1.4M in EthereumMax Promotion Case
In 2023, the SEC also charged former NBA player Paul Pierce with violating anti-fraud and anti-touting rules by promoting the EthereumMax cryptocurrency. Pierce agreed to settle the charges and pay $1.409 million in penalties.
The regulator charged the NFT star for touting EMAX tokens, cryptocurrencies sold by EthereumMax, on social media without disclosing the payment he received for the promotion and for making false and misleading statements regarding the token.
The commission detailed that Pierce received more than $244,000 worth of EMAX tokens to promote the project on Twitter.
On one special occasion, Pierce tweeted a screenshot of an account showing large holdings and profits without disclosing that it was not his own personal holdings.
The NBA star agreed to settle the charges by paying $1.4 million in penalties, disgorgement and interest “without admitting or denying the SEC’s findings,” the commission said.
