Regarding Celebrity Nft Marketing, Yuga Labs And Moonpay Are Being Sued



By Awais Rasheed // in NFT


According to court documents, investors say Yugo Labs, the organization behind Bored Ape Yacht Club. They neglected to disclose the suspected role of celebrities in promoting and selling NFTs and have launched a class-action complaint against the corporation.

The lawsuit says Bored Ape was misrepresented in advertisements by celebrities, including Justin Bieber, Serena Williams, and Madonna.

Yuga Labs is being sued after filing a lawsuit against it on Friday in California District Court.

The complaint names more than 40 parties as defendants, including Paris Hilton, Snoop Dog, Jimmy Fallon, Justin Bieber, Madonna, Serena Williams, Post Malone, and Diplo. John T. Jasnoch of Scott+Scott Attorneys at Law LLP filed a class action lawsuit on December 8 in the Central District of California.

He alleges that cryptocurrency firms promoted their digital assets through their Hollywood network without making the required disclosures. It says in the document:

“This case exemplifies these issues because it involves a massive scheme involving a blockchain start-up company called Yuga Labs, Inc. (‘Yuga’), a well-connected Hollywood talent agent named Guy Oseary, and a front company called MoonPay, who all worked together to market and sell a variety of digital assets.”

The complaint claims that officials at Yuga Labs and Oseary developed a strategy to use a sizable network of A-list sportspeople, artists, and celebrity customers. This was to give investors the impression that they were “joining the club” through Yuga’s flagship NFT line.

“The participation and support of extremely powerful celebrities served as the sole foundation for the exclusivity of BAYC membership.

But the lawsuit claims that this alleged interest in and support of the BAYC NFTs by well-known tastemakers was totally created by Oseary at the direction of the Executive Defendants.

The collections from Yuga Labs NFTs were bought by the two plaintiffs in the lawsuit, Adonis Real and Adam Titcher, between April 2021 and the present. The class action also makes reference to a recent Securities and Exchange Commission (SEC) statement.

The statement concerning celebrity endorsements states that “these endorsements may be unlawful if they do not disclose the type, source, and amount of any remuneration made, directly or indirectly, by the firm in exchange for the endorsement.”

According to a Yuga Labs spokesman, the “claims are parasitic and opportunistic. We are eager to demonstrate our conviction that they are without merit.

The class-action lawsuit was first put forth in July, according to Cointelegraph, when the law firm Scott+Scott alleged Yuga Labs used celebrity endorsements to “inflate the price” of the BAYC NFTs and the APE token in an effort to find investors who had been harmed.

Additionally, Yuga Labs is a subject of a broader investigation by US regulators into the NFT business. According to reports, the SEC is looking into Yuga Labs to see whether some NFTs are “more analogous to stocks” and whether selling them is against the law.



About the author, Awais Rasheed

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