Jake Paul, Soulja Boy, and Nick Carter are being sued for their involvement in the SafeMoon crypto scheme. According to the claims, the hired stars made “false or misleading statements” in order to entice fans to invest in the digital coin.
SafeMoon LLC, the company behind the $SAFEMOON Token, has been sued, along with several celebrity promoters and social media stars, for allegedly misleadingly promoting and selling a bogus scheme.
The company is accused of conspiring with celebrities and others to make the investment appear legitimate and to attract investors on social media, all while “disguising their control” over the tokens being sold.
A scheme like this is popularly referred as Pump and Dump, which is a felony offense intended to increase the price of a stock or security by making baseless, factually inaccurate, or greatly exaggerated insinuations by well-known figures.
The defendants have requested a jury trial, wanting to bring the class action lawsuit on behalf of themselves and everyone who purchased the tokens between March last year and yesterday.
According to the lawsuit, Jake Paul and Soulja Boy were liable for participating in a scheme that involved a gradual sell-off of holdings while trading volume from normal investors remained overvalued.
According to the lawsuit, the Promoter Defendants’ improper promotional activities generated enough trading volume for all of the defendants to sell their $SAFEMOON Tokens to unsuspecting investors.
According to reports, SafeMoon founder and CEO Braden John Karony and the company’s other top executives launched the digital token with the intention of selling their holdings for a profit when the numbers reach a certain peak.
Even as the blockchain industry gains unstoppable momentum, crypto exchange company Binance has not steered away from alerting the masses about the risks of making an investment in upcoming cryptocurrencies, which is mostly hyped by mainstream celebrities.