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Bored Ape Yacht Club (BAYC) and Yuga Labs, creators of crypto fintech Moonpay, facing a class action lawsuit Suspicion of using celebrities to misleadingly promote and sell non-fungible tokens (NFTs).
More than 40 individuals and companies are named as defendants in the lawsuit, including Paris Hilton, Snoop Dogg, Jimmy Fallon, Justin Bieber, Madonna, Serena Williams, Post Malone and Diplo. The class action lawsuit was filed on December 8 by John T. Jasnoch, Scott+Scott Attorneys Law LLP, Central District of California, alleging that cryptocurrency companies used the Hollywood Network to promote digital assets without complying with disclosure requirements. claimed to have done so. The documentation states:
Because the case involves a sprawling scheme between blockchain startup Yuga Labs, Inc. (Yuga), a Hollywood talent agent (defendant Guy Oseary), and front operations (MoonPay). , symbolizes these concerns. , all banded together for the purpose of promoting and selling an array of digital assets. “
According to the lawsuit, executives at Yuga Labs and Oseary are selling a vast array of A-list musicians, athletes, and celebrity clients through Yuga’s flagship NFT collection, with the goal of bringing investors the perception of “joining the club.” I made a plan to leverage the network.
The exclusivity of BAYC membership was based entirely on the participation and endorsement of highly influential celebrities. Manufactured entirely by Oseary at request.., alleges the lawsuit.
Related: Yuga Labs Acquires Beeple’s 10KTF Game, Metaverse Integration Hints
Two plaintiffs, Adonis Real and Adam Titcher, purchased Yuga Labs’ NFT collection from April 2021 to the present. The class action lawsuit also referenced previous U.S. Securities and Exchange Commission (SEC) statements regarding celebrity endorsements, stating that “these endorsements may directly or indirectly influence the nature, source, or amount of compensation paid. It may be illegal if you do not disclose it to the company, in exchange for a guarantee. “
As reported by Cointelegraph, the class action lawsuit was first filed in July, with law firm Scott+Scott alleging that Yuga Labs was using celebrity endorsements to inflate the price of BAYC NFT and APE (APE) tokens. and attempted to identify the victim. Investor.
Yuga Labs is also part of a broader investigation into the NFT market by US regulators. The SEC is reportedly investigating Yuga Labs as to whether certain NFTs are “more like stock” and whether their sale violated federal law.
Yuga Labs and Moonpay did not immediately respond to Cointelegraphs’ request for comment.
