Yuga Labs is one of the most popular names in the crypto market. The company has made progress and has established itself as a well-known brand in the cryptocurrency market. Unfortunately, the recent few days of the company have not gone according to plans. The company is currently facing a class action accusing them of trying to exploit innocent investors. The lawsuit was filed by the famous law firm, Scott+Scott. The allegations brought against the company stated that they induced their community inappropriately to invest in nonfungible tokens of Bored Ape Yacht Club recently. They also did the same with some of the projects that were affiliated with the ApeCoin token.
The company has found itself in deep waters after it allegedly utilized celebrities to inappropriately influence the community. The promotion campaigns by the celebrities resulted in the inflation of the prices of APE tokens and BAYC NFTs. Yuga Labs is also found guilty of falsely portraying growth opportunities and promising significant returns on investments. It was found out that the promised growth was directly dependent on continued proportion. Soon after this revelation, the prices of the coin began dropping significantly. The investors are currently left with tokens that have lost almost eighty-seven percent of their inflated price. Let us learn more about the story in detail below.
Yuga Labs Faces Legal Complications
Yuga Labs has found itself in deep waters following a lawsuit from Scott+Scott. The firm misused celebrity influence to misguide the investors into buying tons of tokens and NFTs for millions of dollars.
Scott+Scott is reaching out to all the investors that fell victim to the scam. However, all these allegations do not seem to have any effect on Yuga Labs.