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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.

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.

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Donald Trump’s ‘big, beautiful bill’ has sparked ugly debate – so why is it so controversial?

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Donald Trump's 'big, beautiful bill' has sparked ugly debate - so why is it so controversial?

It is certainly big – 940 pages long – but on the question of beauty, Congress is divided.

Donald Trump’s “big, beautiful bill” has sparked ugly debate – both for its ambitious scope and for the political manoeuvring that’s gone on around it.

Elon Musk branded it “political suicide” for Republicans and threatened to fund challenges against those who back it in next year’s midterm elections.

But the president hit back, suggesting he would consider cutting Musk’s lucrative government contracts or even deporting him back to South Africa.

The “big, beautiful bill”, or HR 1 to give the proposed legislation its proper title, is Mr Trump’s signature spending and tax policy.

It extends tax cuts he secured in 2017 and bankrolls his second-term agenda in the White House.

File pic: Reuters
Image:
File pic: Reuters

Here is a summary of the key points:

Permanent tax cuts: Extending relief from the 2017 Tax Cuts and Jobs Act

Small business support: Doubling the small business expensing limit to $2.5m (£1.8m) to help businesses expand and hire staff

Child tax credit: Expanding the child tax credit and making it permanent, benefiting 40 million families

Making housing affordable: Expanding the low-income housing tax credit to kickstart construction of affordable homes

Defence and border security: Allocating $170bn (£123bn) for border security alone, including $46bn (£33bn) for completing the border wall

Made-in-America incentives: Providing tax breaks and incentives for domestic manufacturing to promote US industry

Healthcare and social welfare: Implementing restrictions on Medicaid, which provides healthcare for millions of Americans, and reducing funding for certain healthcare and nutrition programmes.

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Clash over ‘monster’ debt bill

Musk, Mr Trump’s former ally and the man who established the Department of Government Efficiency (DOGE), claimed the bill “raises the debt ceiling by $5trn, the biggest increase in history.”

“DOGE is the monster that might have to go back and eat Elon,” was President Trump’s response.

The national debt currently stands at $37trn (£27trn) and the Congressional Budget Office (CBO) estimates that the bill could add $2.4trn (£1.7trn) to that over the next decade.

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Trump threatens to ‘put DOGE’ on Musk

Bill splits Republican ranks

Republican Senator Thom Tillis voted against the bill and, following criticism from the president, announced he would not seek re-election in North Carolina.

He said he couldn’t support it due to his concerns about the impact cuts to Medicaid would have on people in his state.

Democrats in the Senate forced a full reading of all 940 pages and then a vote-a-rama, a series of marathon voting sessions.

Read more from Sky News:
Elon’s dad on the Musk-Trump bust-up
How Musk’s cost-cutting mission fell flat

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In the House of Representatives, it passed by a single vote, 215-214. In the Senate, Vice President JD Vance, had to cast the deciding vote to break a tie (50-50).

Legislatively, the progress of the bill has been a case study in the complexities of American law-making.

Strategically, it represents a mammoth effort to consolidate the president’s policy agenda and secure his legacy.

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Gaza ceasefire proposal a significant moment – but there are still many unanswered questions

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Gaza ceasefire proposal a significant moment - but there are still many unanswered questions

In the long Gaza war, this is a significant moment.

For the people of Gaza, for the Israeli hostages and their families – this could be the moment it ends. But we have been here before, so many times.

The key question – will Hamas accept what Israel has agreed to: a 60-day ceasefire?

At the weekend, a source at the heart of the negotiations told me: “Both Hamas and Israel are refusing to budge from their position – Hamas wants the ceasefire to last until a permanent agreement is reached.

“Israel is opposed to this. At this point, only President Trump can break this deadlock.”

The source added: “Unless Trump pushes, we are in a stalemate.”

Israel-Gaza – live updates

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Will Trump achieve a Gaza ceasefire?

The problem is that the announcement made now by Donald Trump – which is his social-media-summarised version of whatever Israel has actually agreed to – may just amount to Israel’s already-established position.

We don’t know the details and conditions attached to Israel’s proposals.

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Would Israeli troops withdraw from Gaza? Totally? Or partially? How many Palestinian prisoners would they agree to release from Israel’s jails? And why only 60 days? Why not a total ceasefire? What are they asking of Hamas in return?

We just don’t know the answers to any of these questions, except one.

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Dozens killed at beachfront cafe in Gaza

We do know why Israel wants a 60-day ceasefire, not a permanent one. It’s all about domestic politics.

If Israeli Prime Minister Benjamin Netanyahu were to agree now to a permanent ceasefire, the extreme right-wingers in his coalition would collapse his government.

Itamar Ben-Gvir and Bezalel Smotrich have both been clear about their desire for the war to continue. They hold the balance of power in Mr Netanyahu’s coalition.

Read more:
British-Israeli soldier killed in Gaza
‘Almost 60 killed in Israeli strikes’

If Mr Netanyahu instead agrees to just 60 days – which domestically he can sell as just a pause – then that may placate the extreme right-wingers for a few weeks until the Israeli parliament, the Knesset, is adjourned for the summer.

It is also no coincidence that the US president has called for Mr Netanyahu’s corruption trial to be scrapped.

Without the prospect of jail, Mr Netanyahu might be more willing to quit the war, safe in the knowledge that focus will not shift immediately to his own political and legal vulnerability.

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What is ‘Alligator Alcatraz’?

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What is 'Alligator Alcatraz'?

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Mark Stone and David Blevins unpick the latest development in Donald Trump’s mass deportation plan – a detention centre in the Florida Everglades nicknamed “Alligator Alcatraz”.

They also discuss the president’s “Big Beautiful Bill”, which has narrowly passed in the Senate. The legislation likely to define Trump’s second term is now one step closer to becoming law.

And there’s breaking news to digest on US weapons to Ukraine, as well as a potential ceasefire in Gaza.

If you’ve got a question you’d like the Trump100 team to answer, you can email it to trump100@sky.uk.

You can also watch all episodes on our YouTube channel.

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