Justin Bieber, Snoop Dogg and Paris Hilton are involved in a lawsuit against an NFT company; understand the case

The argument goes like this: between last year and 2022, several global celebrities acquired NFTs and shared them on their networks. Most of the NFTs propagated by these celebrities were from the Bored Ape brand, the one with little monkeys. Following the decline in the sales of these tokens and the loss of market value, investors who jumped on the famous bandwagon felt uncomfortable with the lack of transparency from bigwigs when promoting digital arts.

Neither Justin, nor Snoop, nor even Paris Hilton disclosed their interests and finances when releasing NFTs. In other words, for investors who felt deceived, the artists made a lot of money exposing the tokens, but they did not come forward to say so. 

According to Billboard, a complaint was filed last Thursday in Los Angeles Federal Court accusing NFT company Bored Ape Yuga Labs Inc. of perpetuating a “vast scheme” in which they “secretly paid ” the “highly influential celebrities” to drive the value of digital arts.

The prosecution believes that celebrities influenced everyone and omitted the purpose of spreading NFTs

In the pages of the lawsuit, the prosecuting attorneys say people “rely heavily on the perception that joining the club brings investor status and gives them access to events, benefits and other lucrative investment opportunities exclusive to BAYC holders.”

The other day, we mentioned here on Newsverso that Kim Kardashian had to pay a million-dollar fine after promoting a cryptocurrency without reporting her personal interests. 

The defense of YugaLabs, in turn, said that the accusations are “opportunistic and parasitic”. “We believe they have no merit and we hope to prove this,” she added.