Should the Bored Ape Yacht Club (BAYC) community expect heavy weather soon? Possible, if we believe an initiative of a law firm, which intends to bring together investors who consider themselves cheated by the company Yuga Labs. What do we blame him for?
The Bored Ape Yacht Club (BAYC) threatened with legal action
The initiative is American, and it comes from the law firm Scott+Scott. He accuses the company responsible for the Bored Ape Yacht Club, Yuga Labs, of misleading investors. The latter would have encouraged investors to buy its products – which are according to lawyers financial securities – by promising them guaranteed returns on investment.
But as we know, the prices of non-fungible tokens (NFTs) from Yuga Labs (and cryptocurrencies in general) have fallen in recent months. The law firm therefore believes that investors have been cheated, and wishes to recover the funds thus “lost”. Its statement explains as follows:
“Yuga Labs executives used celebrity promotions to inflate the price of NFTs and the company token [l’ApeCoin (APE) ndlr]by promoting growth prospects and substantial returns on investment to innocent investors.»
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So far, no formal complaint has been filed. Scott+Scott is, however, seeking to bring together enough investors who believe they have been cheated, in order to begin the legal procedure. It is aimed at those who have purchased products from Yuga Labs between April and March of this year.
A broader question will then be asked: are NFTs financial securities? If the question seems familiar to you, it is because it has already been asked many times in the ecosystem, for “classic” cryptocurrencies.
The United States Securities and Exchange Commission has several times sued projects – including Ripple (XRP), accusing them of defrauding investors in a similar way. However, we are far from certain that the SEC will validate this interpretation of Scott+Scott. Doing so would indeed oblige them to cover a very wide areathat of art for example.
This type of lawsuit is a refrain in the cryptocurrency industry. Investors who consider themselves cheated sometimes come together to tackle the project they believed in until then. This begs the question personal liability of investorsand that of companies.
Can we really blame a field that promotes freedom of choice and research of not having sufficiently protected investors? This is the question that the trial of Yuga Labs will partially answer if it takes place.
👉 Also read – First successful trip to Otherside, Yuga Labs’ metaverse
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