BAYC: Justin Bieber, Paris Hilton, Yuga Labs, Others Sued For The Promotion Of The NFTs
It is quite a scene as a host of celebrities and TV personalities, such as Paris Hilton, Madonna, Justin Bieber, Jimmy Fallon, and others, have been mentioned in a legal battle with the famous studio, Yuga Labs, which is widely known for its Bored Ape Yacht Club NFT (BAYC).
According to the plaintiff, due to the celebrities’ involvement in ascertaining the credibility of the project, a number of investors suffered huge losses.
We Have Been Misled- Yuga Labs Investors
It is quite a scene in show business and the Web-3 world when a large number of celebrities and media personalities have been mentioned in a lawsuit against Yuga Labs over the sale of the Bored Ape Yacht Club NFT (BAYC).
The matter that was filed on behalf of one Adam Titcher, who is from California, and one Adonis Real, who is also from Florida, is a class action suit, which means that it is on behalf of others that are in the same category as these two plaintiffs.
According to the brief filed by the famous litigation attorney, John T. Jasnoch, who belongs to Scott+Scott Attorneys, the plaintiffs, along with other investors, are seeking the redress of the court against the defendant for having been misled to believe in the credibility of the assets owing to the personalities of the celebrities that had “vouched” for them.
The two plaintiffs, just like other investors, had purchased the Yuga Labs’ NFTs based on the “assurance” of the calibre of celebrities promoting them as of then. They posited that those celebrities had made it look like they had to get their own NFTs lest they miss out on what was going to be a really juicy acquisition. Alas, all they have enjoyed is the drastic loss of their funds.
Yuga Labs Under The Probe Of The SEC
Considering that Yuga Labs recently underwent a probe by the SEC, trying to figure out whether or not any federal laws were violated by them in the course of selling their virtual assets,
The SEC has been trying to figure out whether non-fungible tokens (NFTs) could be classified as securities, and seeing that the brief filed by John T. Jasnoch in the lawsuit refers to NFTs as securities a number of times makes the situation quite interesting.
Also, the brief also stated that Yuga Labs, with the help of a certain Guy Oseary, who is an investor in the Web-3 world, decided to leverage the popular crypto payment exchange, MoonPay, as a disguise and used several top celebrities to help promote and sell their products misleadingly.
According to its spokesperson, Yuga Labs apparently believes that the claims of the plaintiffs are baseless and that they are merely trying to place something on nothing. They also noted that it has become quite a habit for the Scott+Scott lawyers to find fault with the involvement of celebrities in the web3 world, citing the recently struck out case involving Kim Kardashian.
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