Yuga Labs May Face a Potential Class-Action Lawsuit Over Apecoin and NFT Sales – Bitcoin News

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According to the international law firm Scott+Scott’s website, there’s a possibility that the non-fungible token (NFT) company Yuga Labs may be threatened with a class action lawsuit for generally promoting “the growth prospects and change for huge returns on investment to unsuspecting investors.”

Law Firm Seeks Investors Who “Suffered Losses” From Yuga Labs Products

The law firm Scott+Scott details that the NFT company Yuga Labs is accused of using “celebrity promoters and endorsements to inflate the price of the company’s NFTs and token.” However, at the time of writing, current court records show no official class-action case against Yuga Labs has been filed.

Scott+Scott’s website says the firm is currently seeking investors who “suffered losses in association with the purchase of Yuga Labs tokens or NFTs between April 2022 and June 2022.” The token named in the accusations against Yuga Labs is apecoin (APE)a crypto asset associated with the Bored Ape Yacht Club (BAYC) and Otherside metaverse project.

“After selling off millions of dollars of fraudulently promoted NFTs, Yuga Labs launched the Ape Coin to further fleece investors,” the Scott+Scott web page says. “Once it was revealed that the touted growth was entirely dependent on continued promotion (as opposed to actual utility or underlying technology) retail investors were left with tokens that had lost over 87% from the inflated price high on April 28, 2022.” The law firm’s website adds:

As a result, Yuga Labs’ individual investors are now joining together through a class action brought by law firm Scott+Scott, to seek restitution for losses incurred from the purchase of Yuga Labs tokens and NFTs. If you suffered losses in association with the purchase of Yuga Labs tokens or NFTs between April 2022 and June 2022 you are encouraged to reach out to Scott+Scott to learn more about your legal rights.

Scott+Scott Is Involved in 6 Different Crypto Cases – Boutique Law Firms Flock to the Blockchain Industry

The law firm Scott+Scott covers a lot of different legal proceedings and complex litigation in Europe and the United States. Scott+Scott is involved in securities litigation that involves high-profile names like Edison International, General Mills, Intuit, Roblox Corporation, Tesla, Transunion, and Twitter.

Scott+Scott’s website notes that the legal firm is involved with a number of “crypto cases.” other crypto legal matters involve crypto companies and projects like CelsiusEthermax, Safemoon, Solana Labs, Terraand the final crypto case listed is Yuga Labs.

Yuga Labs has not mentioned the accusations stemming from Scott+Scott’s web portal and the last tweet the company made discussed a threat to the NFT community. “Our security team has been tracking a persistent threat group that targets the NFT community,” Yuga Labs tweeted on July 18, 2022. “We believe that they may soon be launching a coordinated attack targeting multiple communities via compromised social media accounts. Please be vigilant and stay safe.”

During the last few years, boutique law firms focusing on complex legal matters that involve blockchain technology have been more prominent in the crypto industry. Like Scott+Scott, a number of these law firms are taking on a lot of litigation matters that involve cryptocurrencies and alleged unregistered securities.

Roche Freedman LLP is another firm that has a variety of crypto cases under the law firm’s wing, and the partners Kyle Roche and Devin “Velvel” Freedman are well known for the court case that involved Craig Wright. Similar to Scott+Scott, Roche Freedman is also involved in a case that’s been filed against the bankrupt crypto lender Celsius.

Tags in this story

APE, Apecoin, BAYC, Bored Ape Yacht Club (BAYC), Celsius, Edison International, Ethermax, General Mills, Intuit, law firms, lawsuit, nft, NFT Assets, NFT community, NFTs, Non-fungible Token, Roblox Corporation, Roche Freedman LLP, Safemoon, Scott+Scott, solanalabs, Terra, Tesla, tokens, Transunion, Twitter, Yuga Labs

What do you think about Yuga Labs facing a potential lawsuit over apecoin and BAYC NFTs? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols today emerging.




Image Credits: Shutterstock, Pixabay, Wiki Commons, BAYC NFTs

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