Soulja Boy and Lil Yachty are among the celebrities being sued over an alleged “pump and dump” cryptocurrency scheme.
Cryptocurrency is as popular as it’s ever been and while many are still confused by the idea, from the outside looking in, it seems like the wild wild west where everyone is getting rich.
While some people are still researching before jumping in, NFTs have become more popular and even more confusing. As always, people rely on social media to help make their financial decisions, even if it’s not recommended. Celebrities have been posting #ADs for crypto and their followers are eating it up. Without any sanctions on how it should work or be promoted, anyone would take hundreds of thousands of dollars to post about it, but the thing is: their fans get the bad end of the deal when the coins tank. These incidents are called “pump and dump schemes.”
Among the defendants in the 60-page lawsuit are Jake Paul, Nick Carter, Soulja Boy, Lil Yachty and YouTuber Ben Phillips, who the complaint alleges played key roles in pumping up the SafeMoon cryptocurrency token V1 on social media and thus inflating its value. The lawsuit alleges that, in collaboration with these celebrity partners, the other defendants—SafeMoon LLC and its subsidiaries, SafeMoon founder and CEO Braden John Karony, and other top SafeMoon execs—marketed the token while failing to disclose their control over both the company and a significant amount of SafeMoon digital assets available for public trading.
The more “rug pull” complaints we have, the sooner something will have to be done, long gone are the days of doing real research. This certainly won’t be the last crypto-related lawsuit we see. You can read more on the Class Action Lawsuit here.