Jake Paul, Lil Yachty, and Soulja Boy are among the celebrities waking up to very bad news this morning. A lawsuit against SafeMoon founder and CEO Braden John Karony claims that celebrities were recruited to artificially inflate the value of the crypto-coin. The celebrities have been named in the class-action suit.
Celebrities have long been accused of using their influence to manipulate the crypto market. Dogecoin, a cryptocurrency that was designed as a joke and created specifically to fail, became the subject of wild speculation after Tesla boss Elon Musk pumped up the product. Many rappers have been doing much of the same with various other crypto and NFT projects.
The suit alleges that the value of SafeCoin rose by 875% throughout 2021. That couldn’t have happened if it weren’t for the various celebrities who talked about it. The lawsuit says SafeMoon execs did a “slow rug pull” on investors, according to AllHipHop.
Lil Yachty, Soulja Boy, and Jake Paul are accused of being a part of the scam. Uninformed investors lost millions by following the hype train. It could spell financial disaster for Braden Karony.
There is no word on whether the celebs will face any personal liability for their involvement. The suit must first prove that they received some form of compensation for helping to pump up the coin. The legal action is not without precedence.
T.I. paid out a $75,000 settlement in a similar lawsuit over the FliK Token. The Game lost a lawsuit over the Paragon coin. The latest class-action suit now involves even more huge names. This could be the start of a very shaky time for blockchain speculation.
What do you think of this story? Let us know in the comments!