A lawsuit accusing Kim Kardashian and Floyd Mayweather of misleading investors by promoting a cryptocurrency on social media has been dismissed.
Investors who bought EthereumMax tokens said they had lost money after believing what the celebrities said about the digital asset.
The lawsuit was filed in January, and it claimed that the defendants had conspired to inflate the value of the tokens.
District Judge Michael Fitzgerald of California said in his ruling on Wednesday that the case raised “legitimate concerns” about the ability of celebrities to persuade fans to “buy snake oil with unprecedented ease and reach”.
But the law still expected investors to “act reasonably” before acting “on the zeitgeist of the moment”, he added.
Kardashian wrote an Instagram post in June 2021 saying: “Are you guys into crypto??? This is not financial advice but sharing what my friends told me about Ethereum Max token.”
Her post included “#ad” at the bottom, indicating she had been sponsored, but it did not disclose her $250,000 payment from EthereumMax.
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Mayweather promoted the EMAX tokens at a boxing match and at a Bitcoin conference in June 2021.
The value of the EMAX tokens rocketed in 2021 – but by January, they had lost 97% of their value.
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In addition to Kardashian, Mayweather and former Boston Celtics star Paul Pierce, the defendants in the case included Steve Gentile and Giovanni Perone, the co-founders of EthereumMax, and Justin French, a consultant and developer for the cryptocurrency.
The judge’s ruling said: “This action demonstrates that just about anyone with the technical skills and/or connections can mint a new currency and create their own digital market overnight.
“Likewise, the action emphasises the power of social media in allowing celebrities to directly communicate with their millions of fans with a touch of a button.
“These two facts, together, have seemingly allowed unvetted and highly volatile investment ventures to go viral based solely on the paid-for word of celebrity promoters.
“Losses have inevitably followed. The court acknowledges that this action raises legitimate concerns over celebrities’ ability to readily persuade millions of undiscerning followers to buy snake oil with unprecedented ease and reach.
“But, while the law certainly places limits on those advertisers, it also expects investors to act reasonably before basing their bets on the zeitgeist of the moment.”
Michael Rhodes, a lawyer for Kardashian, told NBC: “We’re pleased with the court’s well-reasoned decision on the case.”
The investors can refile the lawsuit if they amend some of their claims by 22 December.
It comes two months after Kardashian agreed to pay $1.26m (£1m) and not to promote cryptocurrency for three years to settle claims by the US Securities and Exchange Commission for her failure to disclose the $250,000 payment she received.
Jurors in the trial of Sean “Diddy” Combs have reached a verdict on four of the five counts against him – but the hip-hop mogul will have to wait to learn his fate.
In tense scenes towards the end of the court day on Tuesday, jurors sent a note to say they had reached verdicts on two charges of sex trafficking and two charges of transportation for prostitution, but had been unable to reach a unanimous decision on the charge of racketeering conspiracy.
Combs‘s lawyers surrounded him at the defence table after the note was sent to the court, and at one point he held his head in his hands.
After discussions with prosecution and defence lawyers, Judge Arun Subramanian told jurors to continue deliberating on Wednesday rather than deliver a partial verdict.
Image: Combs and one of his lawyers, Marc Agnifilo, earlier in the day. Pic: Reuters/Jane Rosenberg
The jury has testimony from more than 30 witnesses to consider – including Combs’s former long-term partner Casandra “Cassie” Ventura and another former girlfriend called “Jane”, who testified under a pseudonym to protect her identity.
Prosecutors allege the 55-year-old rapper used his fame and power to force Cassie and “Jane” into drug-fuelled sex sessions with male sex workers, which were referred to as “freak-offs”, “wild king nights”, or “hotel nights”.
He was also physically violent and blackmailed them with footage, jurors were told.
They also heard from “Mia”, a former employee who alleged she was sexually assaulted by the rapper on several occasions during her career. She also testified using a pseudonym.
Combs has pleaded not guilty to all charges and his defence team has argued that prosecutors are attempting to criminalise what they say was a consensual “swingers lifestyle”.
The rapper chose not to testify and his lawyers did not call any witnesses, building their arguments instead through lengthy cross-examinations of the witnesses called by the prosecution.
The charges against Diddy – and potential sentences
Count 1: Racketeering conspiracy – up to life in prison
Count 2: Sex-trafficking of Cassie Ventura – a minimum of 15 years and maximum of life in prison
Count 3: Transporting individuals including but not limited to Cassie Ventura to engage in prostitution – a maximum sentence of 10 years in prison
Count 4: Sex-trafficking of Jane* – a minimum of 15 years and maximum of life in prison
Count 5: Transporting individuals including but not limited to Jane to engage in prostitution – a maximum of 10 years in prison
What is racketeering conspiracy?
Racketeering conspiracy, which is count one on the verdict sheet, is the most complicated of the charges against Combs.
Jurors need to decide not only whether the rapper created a “racketeering enterprise”, but also if he was involved in various offences as part of this, including kidnapping, arson and bribery.
The charge falls under the US’s RICO laws (the Racketeer Influenced and Corrupt Organisations Act), which is best known for being used in relation to organised crime and drug cartel cases.
After closing arguments last week, jurors began deliberation on Monday and had spent about 13 hours discussing in total by the time they sent their note.
Before reaching the verdict on the four counts, they had requested to review crucial testimony from Cassie about her account of an assault in a hotel in Los Angeles in 2016.
Captured on CCTV, the footage was played in court several times – showing Combs, wearing only a towel and socks, beating, kicking and dragging Cassie in a hallway.
His defence team admitted in their opening statement that this was domestic violence, and said the music star regretted these actions – but that they did not amount to any of the federal charges against him.
As well as Cassie’s evidence on that assault, they asked to see her testimony on an incident at the Cannes Film Festival in 2013 – when she said Combs accused her of taking drugs from him and kicked her off of his yacht.
On their way back to the US, she told the court, he threatened to release explicit videos of her having sex with an escort.
Jurors also wanted to review testimony given by a male sex worker at the start of the trial.
Combs could face 15 years to life in prison if he is convicted of all charges.
Jurors will continue deliberating on the racketeering conspiracy charge on Wednesday.
Elon Musk has stepped up his attacks on Donald Trump’s sweeping tax and spending bill – weeks after a spectacular fallout between the world’s richest man and the US president.
Following weeks of relative silence after clashing with Mr Trump over his “big beautiful bill”, the billionaire vowed to unseat politicians who support it.
In a post on X, Musk said those who had campaigned on cutting spending but then backed the bill “should hang their heads in shame”.
He added: “And they will lose their primary next year if it is the last thing I do on this Earth.”
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Musk also threatened to put their faces on a poster which said “liar” and “voted to increase America’s debt” by $5trn (£3.6trn).
The posts attracted a swift reply from Mr Trump, who claimed the billionaire “may get more subsidy than any human being in history” for his electric car business.
“Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” he wrote on Truth Social.
“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”
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Elon’s dad on the Musk-Trump bust-up
Musk spent at least $250m (£182m) supporting Mr Trump in his presidential campaign and then led the newly formed Department of Government Efficiency (DOGE), which sacked about 120,000 federal employees.
He has argued the legislation would greatly increase the US national debt and wipe out the savings he claimed he achieved through DOGE.
As the Senate discussed the package, Musk called it “utterly insane and destructive”.
The Tesla and SpaceX CEO said the bill’s massive spending indicated “we live in a one-party country – the PORKY PIG PARTY!!”
“Time for a new political party that actually cares about the people,” he wrote.
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