Some of the world's most popular celebrities have been named in a lawsuit alongside blockchain technology company, Yuga Labs Inc which is the founder of the Bored Ape Yacht Club (BAYC) non-fungible token (NFT) collection.
Several prominent actors, musicians and athletes are among the celebrities who have been sued in Los Angeles (LA) federal court for allegedly promoting the Yuga Financial Product through misleading methods.
Investors have reportedly suffered shockingly large losses after buying Yuga assets in 2021, plaintiffs Adam Titcher and Adonis Real commented.
It is understood that Yuga has signed an agreement with Guy Oseary, entertainment manager and founder of Oseary's Sound Ventures company so that they can come up with various ideas to attract more celebrity clients.
But the charges came when famous stars such as Justin Bieber, Post Malone, Snoop Dogg, the Weeknd and Kevin Hart were promoting BAYC and other Yuga offers through the financial technology company, MoonPay.
Explained further, their sales have earned billions of dollars while conducting misleading promotions related to the launch of the entire BAYC ecosystem, but investors are receiving the brunt of it when they buy losing investments at high prices.
Among the 37 defendants charged are Oseary, Yuga Labs, MoonPay, Reddit co-founder Alexis Ohanian, NFT artist Beeple, Paris Hilton, Diplo, Future, Jimmy Fallon, Gwyneth Paltrow, DJ Khaled, and Madonna.
They are accused of generating billions of dollars through misleading celebrity endorsements and not registering securities with the United States Securities and Exchange Commission (SEC).
