Soulja Boy and Lil Yachty have found themselves in some legal issues as they are facing a class-action lawsuit in an alleged cryptocurrency scheme.
For those who don’t know about Safemoon, it’s a human-focused technology and innovation business expanding blockchain technologies for a brighter tomorrow.
The filing alleges that the company’s motive in using celebrities and influencers was a marketing tactic to eventually sell their holdings for a profit when numbers were high.
It looks like the “pump and dump” strategy was successful as the “misleading promotions” and celebrity endorsements artificially increased interest in and the trading volume for the asset throughout 2021.
The 60-page lawsuit - which includes the two rappers, Jake Paul, Nick Carter, YouTuber Ben Phillips, as well as the defendant subsidiaries like SafeMoon founder and CEO Braden John Karony, and other top SafeMoon execs - alleges the collaboration 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.
“On December 31, 2021, the price of the SafeMoon Token hit a low of $0.0000006521 per token, an over 80% drop from its height during the Class Period, which it has not been able to recover,” the lawsuit reads. “As of the filing of this Complaint, the trading volume for the SAFEMOON Token has plummeted to around only $60,000.”
The SafeMoon token is a speculative digital token created in March 2021 by a group of cryptocurrency developers and investors, including defendants Karony, SafeMoon Chief Operating Officer Jack Haines-Davies, Global Head of Products Ryan Arriaga, Chief Technology Officer Hank Wyatt, and SafeMoon representative Shaun Witriol.
To break it down, SafeMoon tokens are blockchain-based digital assets known as “BEP-20 tokens” that are created through the Binance Smart Chain main net blockchain, the case explains.
No reps for any celebrities involved have commented at this time.