Sotheby's and Paris Hilton , Among Those Sued by Investors , As NFT Prices Collapse.
CNN reports that a group of investors has filed a lawsuit against Sotheby's Holdings Inc.
And others over a 2021 auction of Bored Ape Yacht Club non-fungible tokens (NFTs).
CNN reports that a group of investors has filed a lawsuit against Sotheby's Holdings Inc.
And others over a 2021 auction of Bored Ape Yacht Club non-fungible tokens (NFTs).
The news follows a collapse in value for the celebrity-promoted collectibles.
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Four plaintiffs are reportedly named in the class action lawsuit, which alleges that the auction house's endorsement of the NFTs was purposefully misleading.
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Four plaintiffs are reportedly named in the class action lawsuit, which alleges that the auction house's endorsement of the NFTs was purposefully misleading.
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The lawsuit also accuses Sotheby's of colluding with the NFTs' creator, Yuga Labs, in order to artificially inflate the collectible's value.
CNN reports that Sotheby's is just one of 30 defendants named in the filing.
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Justin Bieber and Paris Hilton are among celebrities accused of promoting the NFT collection without also disclosing their financial links to the company.
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Justin Bieber and Paris Hilton are among celebrities accused of promoting the NFT collection without also disclosing their financial links to the company.
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In May of 2022, the collectibles were selling for at least $400,000.
According to CoinGecko, a cryptocurrency market tracker, the NFT can now be purchased for as little as $52,445.
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Sotheby’s representations that the undisclosed buyer was a ‘traditional’ collector had misleadingly created the impression that the market for (Bored Ape Yacht Club) NFTs had crossed over to a mainstream audience, Plaintiff's legal filing, via CNN.
Earlier this year, eight other celebrities were charged by the Securities and Exchange Commission (SEC) for not revealing that they were compensated to promote cryptocurrencies.
Earlier this year, eight other celebrities were charged by the Securities and Exchange Commission (SEC) for not revealing that they were compensated to promote cryptocurrencies
