California Judge Permits State-Level Lawsuits Against EthereumMax Promoters

A federal judge in California has cleared the way for state-level class actions against celebrities who promoted the EthereumMax (EMAX) token. Investors allege misleading endorsements by Kim Kardashian, Floyd Mayweather, and Paul Pierce contributed to significant losses during the token's volatile price swings in 2021.

The ruling allows cases to proceed in California, New York, Florida, and New Jersey, while rejecting a broader nationwide class action. EMAX's price had surged 116,000% before collapsing over 99% within weeks of its celebrity-fueled promotion period.

This decision marks a significant development in cryptocurrency-related securities litigation, potentially establishing precedent for influencer liability in digital asset promotions. The case underscores growing regulatory scrutiny of celebrity crypto endorsements following high-profile collapses.