In a class-action lawsuit concerning an alleged SafeMoon cryptocurrency scam, Jake Paul, Soulja Boy, and Lil Yachty have been listed as defendants. As per the reports by ClassAction.org, Jake Paul and the rappers are only three of the celebrities implicated in the SafeMoon cryptocurrency token V1 “pump-and-dump” scam. Nick Carter, YouTuber Ben Phillips, and SafeMoon LLC and its affiliates are among the other defendants.
The 60-page lawsuit, filed in California’s Central District Court on February 17, alleged that the defendants misled cryptocurrency investors by promoting SafeMoon tokens while profiting behind the scenes. Jake Paul, Nick Carter, Soulja Boy, Lil Yachty, and YouTuber Ben Phillips are accused of boosting the value of the SafeMoon tokens through social media.
According to the complaint, SafeMoon founder and CEO Braden John Karony and other employees promote the token while concealing their firm ownership and a large quantity of SafeMoon digital assets available for public trade.
According to the report, the lawsuit intends to protect all persons who acquired SafeMoon tokens between March 8, 2021, now and were affected as a result.
SafeMoon to the moon?
In a successful “pump-and-dump” strategy, the advertisements that boosted the price of SafeMoon saw the price drop by the end of 2021. While the executives departed the firm and a wallet for its cryptocurrency failed to debut. Directors and celebrity promoters gradually sold their personal stakes as well.
The price of the SafeMoon Token fell to $0.0000006521 per token on December 31, 2021. According to the lawsuit, it had plummeted over 80% from its peak during the period, from which it has yet to recover. “As of the lodging of this Suit, the SAFEMOON Token’s trading volume had dropped to roughly $60,000.”
The defendants Karony, SafeMoon COO Jack Haines-Davies, Global HOP Ryan Arriaga, CTO Hank Wyatt, and SafeMoon representative Shaun Witriol established the SafeMoon token in March 2021 as a speculative digital token.
According to ClassAction, by April 2021, the corporation had declared that approximately four trillion tokens had been “burned” and “gone,” with other memoranda focused on the asset’s worth being at an all-time high. However, according to the evidence, SafeMoon’s cryptocurrency token would reach its highest peak in August 2021.