Jake Paul, Soulja Boy, and a plethora of other superstars are now being sued for their roles in the cryptocurrency SafeMoon. Including allegations that they made “false or misleading promises” on social networking sites to users.
The plaintiffs are challenging Safemoon LLC. The firm behind the Safemoon coin, as well as various “celebrity supporters”. Such as Jake Paul and Soulja Boy, over reportedly falsely advertising and sales of the cryptocurrency. He accuses the firm of presenting “false or deceptive comments”. To buyers on social networking sites in coordination with all these personalities. And many others, all the while “hiding their influence” over the tradable tokens.
Numerous “famous promoters” have apparently sued Safemoon.
The plaintiffs alleged “misrepresentative publicity” and “celebrity endorsement”. Unfairly increase in interest as well as value in the coins. Leading buyers to invest those at high prices, and this constituted a “fraud.”
He further claimed that the corporation colluded with the organizers to benefit from the sale of the tokens. This is known as a pump-and-dump strategy. And it is used by plaintiffs throughout their lawsuits.
SafeMoon crypto Fraud
On the representation of all owners who bought the token on March 8, 2021. And February 17, 2022, they sued the company. A court hearing has also been requested by the plaintiff.
“The price certainly went from a high of $0.00000355 to a low of $0.0000014 (a 60.5% decrease).”
Moreover, Jake Paul has made no secret of his involvement in cryptocurrencies and non-fungible tokens (NFTs).
The plaintiffs are suing for damages and payment for the money they believe they allegedly lost. As a result of the alleged swindle. This involves monetary assistance, as well as the repayment of attorney costs and expenditures.
What does Safemoon have to say?
The defendants’ promises to construct a dedicated SafeMoon “wallet”. Wherein buyers will “have a better spot” to keep their SafeMoon coins has been at the heart of the claim. According to the suit, Karony predicted that SafeMoon would create its very own wallet. And cryptocurrency platform as early as April 2021.
Safemoon’s creators have certainly acknowledged that the token’s introduction was not really a fraud. Further in January 2022, development relocated here for the second issue of the token.
Neither the corporation nor the celebrities named in the lawsuit complaint have responded to the allegations publicly. If they do, we’ll add more information to this post.
It is indeed crucial to keep in mind that class action cases eventually work their way through to the legal system. Usually leading to an agreement, suspension, or settlement outside of court.