A US federal judge dismisses a proposed class action lawsuit against Kim Kardashian, Floyd Mayweather Jr., and others over promoting EthereumMax on social media
Context & Ripple Effects
The case began with allegations that Kardashian and other celebrities helped drive investors into EthereumMax through a promotional campaign. Separately, Kardashian had already reached a $1.26M SEC settlement over an undisclosed EthereumMax promotion and accepted a three-year restriction on promoting crypto securities.
The dismissal separates the private investors’ proposed class action from the regulatory disclosure track. It also follows Floyd Mayweather Jr.’s earlier SEC settlement over undisclosed ICO promotions, showing that celebrity crypto endorsements had already drawn enforcement scrutiny.
First-order effects
- Kim Kardashian, Floyd Mayweather Jr. and the other defendants no longer face the dismissed proposed EthereumMax class action in its reported form.
- The dismissal does not alter Kardashian’s SEC settlement, including the payment and her agreement not to promote crypto securities for three years.
Second-order effects
- For celebrity promoters, the outcome underscores that private investor suits and SEC disclosure cases are distinct sources of legal exposure, with one proceeding’s result not determining the other.
- Crypto projects using paid social endorsements face greater pressure to document compensation disclosures, given the SEC actions involving both Kardashian and Mayweather.
Third-order effects
- The related coverage points to a more durable separation between investor-recovery litigation and securities-disclosure enforcement around crypto marketing, with regulators able to pursue disclosure failures independently of class-action outcomes.
- If that pattern persists, endorsement compliance—not merely the performance of the promoted token—becomes a central constraint on celebrity-led crypto campaigns.
The trend: Celebrity crypto promotion is moving into a compliance-led era in which disclosure enforcement and private investor litigation operate on separate tracks.