The class action lawsuit seeks punishment for celebrities who participated in the SafeMoon “pamp and dump” token scheme.
The cryptocurrency project SafeMoon, allegedly hired a number of celebrities to lure investors with misleading stocks. Some of the big names involved in the class action suit include musicians such as Nick Carter, Soulja Boy, Lil Yachty and YouTubeers Jake Paul and Ben Phillips.
According to the lawsuit, SafeMoon and its subsidiaries mimicked real-life Ponzi schemes by misleading investors into buying SafeMoon tokens under the guise of unrealistic profits.
Citing “burnout” and “tokenomics” as key to SafeMoon’s pricing potential, the hired celebrities allegedly convinced their subscribers to invest in the token.
In addition, the lawsuit cites numerous instances in which celebrities successfully promoted the token enough to artificially increase trading volume and price.
The lawsuit alleges that the celebrities involved attempted to engage in fraud when they gradually unloaded their volume by selling assets to new investors.
“The improper promotional activities of the Promoter Defendants resulted in the bidding volume all Defendants needed to sell their SAFEMOON tokens to unsuspecting investors,” the suit states.
The lawsuit seeks to represent all individuals who have purchased SafeMoon tokens since March 8, 2021 and receive compensation for them.