Kim Kardashian gave what some experts are calling the most impactful piece of financial advice in history. But is she liable to a putative class of investors who took her advice and lost money?
A new class action lawsuit brought in the Central District of California, alleges that on June 14, 2021, Kim Kardashian posted to her Instagram:
"Are you guys into Crypto???? This is not financial advice but sharing what my friends just told me about the Ethereum Max Token! A few minutes ago Ethereum Max burned 400 trillion tokens - literally 50% of their admin wallet giving back to the entire E-Max community."
Kardashian's ability to reach audiences is nearly unmatched. Her Instagram account, with 282 million followers, is the eighth-most followed account on the service. And 19% of respondents to a poll who heard about Kardashian's post invested in EthereumMax, a little-known cryptocurrency launched in 2021. But only one day later, plaintiffs contend, EthereumMax lost 98% of its value, with people who invested based on Kardashian's post left holding the bag. Kardashian is alleged to have been paid between $300,000 and $1 million for her post by the creators of the cryptocurrency.
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