Yuga Labs Received Accusation of Deceptive Token Promotion

Yuga Labs, MoonPay, and many other people and companies have been sued for being part of a vast scheme to deceive their non-fungible tokens. The plaintiff was a California law firm that brought charges against 40 people and companies dishonest in their opinion.

As the main accusation, they put up the undisclosed support of celebrities, with the help of which they began promoting their tokens. According to them, the creators of marketplaces, tokens and other things involved in the cryptocurrency world have resorted to not the most law-abiding and honest methods of promoting products for profit.

Scott + Scott, which sought out the participants in the class action lawsuit filed against Yuga Labs and other defendants, alleges that Hollywood talent agent Guy Osiri helped representatives of the aforementioned studio.

According to Scott + Scott, they were able to come up with a plan together to use their "extensive network of high-profile musicians, athletes, celebrity clients and other partners for fraudulent promotion." Thus, Scott + Scott believes that Guy Osiri used his established client base to spread influence with Yuga Labs and create a strong advertising campaign that would attract people to the Bored Ape Yacht Club NFT collection.

The accusers allege that MoonPay was used by Yuga Labs and Guy Oshiri as a “front” to compensate promoters, which had to be carefully hidden from investors buying their non-fungible tokens. Thus, according to Scott + Scott, the promoters managed to create a buzz and artificially draw attention to the Bored Ape Yacht Club NFT collection for a long time.

Naturally, when investors read more and more celebrities in the news about joining the BAYC club, they had a desire to become part of this community and purchase tokens, paying tens of thousands of dollars for them. Scott + Scott allege that Yuga Labs deliberately provoked investors into buying pre-delayed investments at wildly inflated prices.

The lawsuit filed contained allegations regarding links between MoonPay and celebrities that had previously come under scrutiny. When journalists from various publications asked Yuga Labs and MoonPay for comment, they refused to answer their questions.

It is noteworthy that earlier MoonPay CEO Ivan Soto-Wright admitted that the cryptocurrency exchange has commercial relations with users, but there were no further details regarding this.

The case of Yuga Labs and MoonPay is far from the first when investors accuse large companies and influential people of promoting a product, selling a losing position at a deliberately inflated price.

Recently it became known that a group of plaintiffs-investors in EthereumMax lost their case against boxer Floyd Mayweather and actress and fashion model Kim Kardashian. The defenders' lawyers were able to prove that their promotion was not an abuse of the position. Lawyers for the plaintiffs, in turn, said they plan to file another application and support their accusations with new facts.