Yuga Labs and fintech Moonpay are facing a lawsuit for allegedly using celebrities to misleadingly promote and sell NFTs.
Over 40 people and companies are named as defendants in the lawsuit, including Paris Hilton, Snoop Dog, Jimmy Fallon, Justin Bieber, Madonna, Serena Williams, Post Malone, and Diplo.
According to the lawsuit, executives at Yuga Labs and Oseary created a plan to leverage a vast network of A-list musicians, athletes, and celebrity clients, aiming to bring to investors the perception of “joining the club” through Yuga’s flagship NFT collection.
The exclusiveness of BAYC membership was entirely based on the inclusion and endorsements of highly influential celebrities. But this purported interest in, and endorsement of, the BAYC NFTs by high-profile taste makers was entirely manufactured by Oseary at the behest of the Executive Defendants, alleges the suit.
Yuga Labs is also part of a wider investigation into the NFT market by U.S. regulators. Reports show the SEC is investigating Yuga Labs over whether certain NFTs are “more akin to stocks” and whether their sale violates federal laws.
