The American media personality Kim Kardashian has lost a battle to have her case for allegedly scamming EMAX crypto investors thrown out.
Kardashian was fined $1.26 million last October after allegations that she broke US rules by promoting EthereumMax (EMAX) tokens. The SEC said Kardashian didn’t disclose that she was paid $250,000 to post about the token on her Instagram account.
Crypto projects ran aggressive marketing campaigns through media personalities. But, as the bubble burst in 2022, many celebrities and influencers ran into trouble for promoting cryptocurrencies without due diligence.
Posts Were Misleading: Judge
According to Bloomberg, US District Judge Michael Fitzgerald rejected Kardashian’s plea to dismiss the EMAX lawsuit. She faces allegations of falsely advertising the EMAX tokens.
Judge Fitzgerald believes the posts highlighting EMAX token scarcity were misleading.
In January 2022, investors filed a lawsuit against Kardashian for promoting EMAX tokens. Later, the Securities and Exchange Commission (SEC) fined her for not disclosing the payment she received for promoting EMAX.
Kardashian had to settle the charges by paying $1.26 million. This included $1 million plus the $250,000 she received for the promotion and additional interest.
Due to the crypto winter in 2022, many other celebrities also came into trouble for promoting various crypto projects.
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Source: https://beincrypto.com/kim-kardashian-loses-dismiss-crypto-lawsuit/