Ex-Celtics star Paul Pierce and other big-name celebrities were named in a crypto scam lawsuit. The lawsuit alleges that the ex-Celtics star partook in a “pump and dump” scheme regarding a crypto coin named “EthereumMax.”
The New York Times recently released an article regarding celebrities and cryptocurrency scams. Matt Damon, Logan Paul, Kim Kardashian, and Floyd Mayweather Jr. were just a few of the celebrities named in a crypto scam lawsuit.
According to the lawsuit, Mr. Pierce received more than 15 trillion EthereumMax tokens in exchange for tweets endorsing the coin. None of the tweets excerpted in the lawsuit mentioned a business relationship with the token’s creators. Shortly after promoting the project, the lawsuit claimed, Mr. Pierce sold his tokens – an apparent “pump and dump” operation in which he profited by encouraging fans to buy the tokens, before selling his own holdings at a higher price.
“Pump and dump” refers to a scheme where investors in a token generate attention towards their product to drive up its value. Once the token reaches peak value, the investors then sell their tokens, driving the value down and leaving newer investors in the dust.