NFT Nightmare- Mega Lawsuit Hits Yuga Labs and Celebs Hard
Investors who put money into a popular digital art collection called Bored Ape Yacht Club (BAYC) are upset. They’ve taken legal action against the creators of the collection, Yuga Labs, and 29 other companies. They say these companies misled them about the value of the collectibles, which have been losing value.
Some of the companies mentioned in the lawsuit are well-known, like the art auction company Sotheby’s, the sportswear brand Adidas, and the cryptocurrency payments company MoonPay. Even celebrities like Justin Bieber and Paris Hilton are being said to be involved.
The investors claim that Sotheby’s and Yuga Labs worked together to make the BAYC collectibles seem more valuable than they really were. They say Sotheby’s sold 100 of these collectibles to one buyer for a very high price, which made other investors want them too. But the investors think this was misleading.
Justin Bieber and Paris Hilton are accused of promoting the BAYC collection without telling people that they were making money from it. They believe Hilton’s representatives pretended to be interested in the collectibles to make them look better.
Adidas is also accused of being part of a plan to make the collectibles seem more valuable than they were. MoonPay is said to have manipulated the market. The investors say that Yuga Labs used MoonPay secretly to pay celebrities and make it look like more people were interested in the BAYC collection.
Yuga Labs and Sotheby’s say the allegations are not true. They think the lawsuit is just an attempt to get money. They believe the claims are not based on real facts.
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The investors want a trial in front of a jury and more than $5 million in compensation.
The value of the BAYC collectibles has gone down a lot in the past year. They were worth much more in 2021, but now their prices have dropped by over 66%.