Kim Kardashian Crypto Scams Image Source:

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NEW DELHI (CoinChapter.com) — Kim Kardashian has become the latest in a long line of celebrities embroiled in crypto-related scams.

“Are you guys into crypto?” Kim Kardashian asked her her 331 million Instagram followers last Jun, promoting the native token of a new crypto project called EthereumMax. Although Kim Kardashian is not an investment buff, the project relied on her “star power” to promote its EMAX tokens.

Although the reality TV star did mention the post was a “#ad,” the US Securities and Exchange Commission was not pleased. Especially since Kim Kardashian failed to disclose the $250,000 she received to share the post on her profile.

Kim Kardashian's EMAX Instagram story.
Kim Kardashian’s EMAX Instagram story. Source: Ben Mckenzie/Slate

Cryptocurrency‘s booming popularity has attracted celebrity interest. However, the risk of celebrities endorsing crypto scam projects has also increased, luring investors toward costly losses.

Here are some celebrities who put their weight behind doomed crypto projects (or ads) and suffered the backlash for it.

First Up, Floyd Mayweather, DJ Khaled, And Paul Pierce

Floyd Mayweather in an EthereumMax t-shirt
Floyd Mayweather in an Ethereum Max t-shirt. Source: Twitter

Kim Kardashian was not the only one celebrity promoting the EMAX token. Professional boxer Floyd Mayweather was also part of the fiasco, along with former NBA star Paul Pierce.

Mayweather was spotted wearing an EthereumMax t-shirt at a Bitcoin conference in Jun. The boxer’s team also sported the t-shirt in the event. In addition, Mayweather talked up the crypto project at the conference and went on to promote it days later during his fight with Logan Paul.

However, EMAX was not Mayweather’s first tryst with suspicious crypto projects. In 2018, the boxer partnered with DJ Khaled to promote Centra tech. Interestingly, the project’s founders were later sentenced to prison for committing fraud.

Also Read: Kim Kardashian fined $1.26M for ‘unlawful’ crypto promotion-SEC

The SEC claimed both Mayweather and DJ Khaled failed to disclose the payments that the project gave them for their promotions. Moreover, the regulatory watchdog also alleged that Mayweather failed to disclose payments from two other ICOs.

Paul Pierce's EMAX tweet
Paul Pierce’s EMAX tweet. Source: Twitter

Paul Pierce used his departure from ESPN as an excuse to promote the controversial EMAX token.

Next, Gwyneth Paltrow

Gwyneth Paltrow promoting crypto scam projects
Gwyneth Paltrow Image Source: Filmibeat

Also known as Iron Man’s romantic interest to the Marvel’s Infinity-War-saga generation, Gwyneth Paltrow has also faced some backlash for her support of certain shady crypto projects.

The actress, known for her wellness and beauty products brand Goop, published a Q&A with cryptocurrency exchange Abra founder Bill Barhydt. The article dealt with cryptocurrencies, mining, Bitcoin, and other crypto-centric topics.

However, the actress faced severe criticism for the piece, as the article went on to promote Abra and its benefits. Paltrow also conveniently failed to mention that she served as an advisor to Abra.

Per the SEC, celebrity endorsements of stocks or other investments might be illegal if the person involved fails to “disclose the nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the endorsement.”

In addition, the actress had also participated in the $200 million debt and equity financing round for crypto mining firm TeraWulf.

However, the investment brought loss and bad press when the firm’s shares slumped after their public trading debut. The media was quick to highlight Paltrow’s connection from him to the firm.

Just a few months back, the Shakespeare In Love star was promoting CashApp by offering a $500,000 Bitcoin giveaway. The stunt raised some eyebrows, as several netizens claimed the move was an obvious PR stunt.

Then There’s Steven Seagal

In 2018, actor, producer, screenwriter, (etc.) Steven Seagal became the brand ambassador of the crypto project Bitcoiin2Gen (B2G). Yes, that’s how it was spelled, Bitcoin with two “i’s.”

The project’s white paper was vague at best, chock full of buzzwords and jargons, without hinting at any details regarding the project itself. The Bitcoin developers emphasized on the project’s unique features such as “mining” and “trading.” …

Steven Seagal became the brand ambassador for Bitcoin2Gen.
Steven Seagal became the brand ambassador for Bitcoin2Gen. Source: Bitcoin2Gen Press Release

The project used the Ethereum blockchain to mint its token. Furthermore, the project also had a recruitment plan similar to other projects like BitConnect and OneCoin (both turned out to be pyramid schemes, BTW).

The projects choice for brand ambassador was also questionable. Seagal has faced accusations of harassing, beating, and sexually assaulting multiple women, along with employment discrimination, and wrongful termination.

Furthermore, Seagal has also been accused of human trafficking, cockfighting, and killing an 11-month-old puppy. Not the kind of ambassador that inspires trust in a brand. In Feb 2020, the SEC settled charges against Seagal for failing to disclose payments the actor received for promoting B2G’s ICO.

The regulatory watchdog revealed that B2G promised to pay Seagal $250,000 in cash and another $750,000 worth of B2G tokens for promoting the platform’s ICO, including a press release.

The Seagal case turned interesting when the actor failed to pay the full penalty ($157,000) the SEC imposed on him. As a result, the regulatory body filed a Motion to Enforce Judgment against Seagal, which the courts granted.

However, Seagal defaulted and SEC had to make do with some of the actor’s assets.

Other actors like Matt Damon, who starred in an ad (below) for Crypto.com that stated “Fortune favors the brave” when it comes to investing in cryptos, faced ire from viewers who claimed the ad was a “male-baiting crypto pitch.”

The ad received wide-spread criticism for forcing people to invest in cryptos or risk looking like weaklings. Although the Martian star might not have been pleased with the unwanted attention, crypto.com certainly enjoyed the nearly 18.5 million views the ad received.

Is Bitcoin back on the path to becoming “digital gold?” Correlation data says its likely.

The post Before Kim Kardashian, These Celebrities Were Involved in Crypto Scams appeared first on CoinChapter.



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