A complaint against Paul Pierce

Several stars, including Paul Pierce, Kim Kardashian or Floyd Mayweather are targeted by complaints for promoting risky and obscure cryptocurrencies, failing to mention their conflicts of interest.

EthereumMax, a cryptocurrency which experienced a vertiginous drop of almost 100% in a few days, had been put forward by Kim Kardashian, Paul Pierce or Floyd Mayweather. This promotion had led to an influx of exchanges, but the price of EthereumMax quickly collapsed. Nine traders who bought EthereumMax are suing Kim Kardashian, the project’s founders, and other promoters, including Mayweather and Paul Pierce, accusing them of concealing their control over EthereumMax tokens and misleading advertising .

According to the complaint, Paul Pierce allegedly received more than 15 trillion EthereumMax tokens in exchange for tweets promoting the cryptocurrency. But none of his tweets mentioned the fact that he had a partnership with the founders of the project. Above all, the complaint mentions that Paul Pierce allegedly sold his tokens, a “pump and dump” technique, i.e. market manipulation which consists of artificially raising the price of a share by false statements, with the aim of reselling these shares, bought at a low price, with a strong capital gain.

However, there are gray areas in the law concerning cryptocurrencies. Under federal law, people who market securities are required to publicly disclose payments they receive for promotions, but it’s unclear which crypto products meet this legal standard.

Via NY Times

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