why the Bored Ape Yacht Club risk a huge lawsuit?

Bored Ape Yacht Club NFTs risk a huge lawsuit that could well change the market for non-fungible tokens.

After scams and crypto meltdown, NFTs Bored Ape Yacht Club are threatened with lawsuits. The American law firm Scott+Scott accuses Yuga Labs, the company behind the famous collection of tokens, of having deceived its investors.

empty promises

At the time of the release of the BAYC (short for Bored Ape Yacht Club) series, Yuga Labs allegedly enticed investors to buy its NFTs, telling them promising guaranteed returns on investment. The NFT series has since benefited from the success it is known for, with sales regularly exceeding hundreds of thousands of euros, a film project (canceled), a video game, and many copies around the world.

However, the price of NFTs, like that of cryptocurrencies, is fluctuating. After experiencing a significant drop in recent months, the law firm in charge of the case believes that BAYC investors have been cheated, and is calling for a reimbursement of lost funds. The file notably accuses Yuga Labs of having used the notoriety of certain celebrities to maintain the enthusiasm around the project: “Yuga Labs executives used celebrity promotions to inflate the price of NFTs and the company’s token, promoting growth prospects and heavy returns to innocent investors“.

No complaint for the moment, but a crucial issue

No complaint has yet been officially filed. The law firm is currently seeking to gather as many investors as possible to begin proper legal proceedings. Are concerned, all Internet users who purchased Yuga Labs products between April and March of this year.

If the complaint is successful, it promises to cause serious problems for Yuga Labs, but also for the entire NFT market. In particular, it will be a question of determining once and for all whether or not, NFTs are financial assets. The question is a recurring one in the realm of non-fiat currencies, and the United States Securities and Exchange Commission has repeatedly prosecuted crypto projects accused of similar facts. However, such questions about NFTs would amount to questioning the digital art market, and the personal responsibility of investors.

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