American Hip Hop artist Soulja Boy, has recently found himself in the middle of a class-action lawsuit over an alleged “scam crypto project” called SafeMoon. Soulja Boy, along with another artist Lil Yatchy, are among those named in a 60-page class-action lawsuit.
Details of the Lawsuit
The lawsuit alleges that the SafeMoon project was a pump and dump scheme, which was hatched by Braden John Karony, its founder. It alleges that Karony sought out celebrities to hype the project on social media, which artificially inflated its price for most of 2021, thereby maximizing profits.
At the end of 2021, a number of the project’s executives jumped ship when the tokens lost around 80 percent of their value. This was after they had risen by 875 percent throughout 2021, which the lawsuit blames on the hype by celebrities.
Slow Rug Pull?
In the lawsuit, the complainants allege that the scheme was designed as a “slow rug pull,” which left investors dealing with the financial mess. Besides that, it is alleged that the SafeMoon project did not deliver on its promises to expand the SafeMoon brand. Other promises were the launch of a crypto wallet, and much more.
The design of this project appears to mirror the infamous failed Fyre Festival, which was organized a few years back by celebrity Ja Rule. Many other celebrities are named in the lawsuit. They include YouTube sensation Ben Philips, Nick Carter of the Backstreet Boys, Jake Paul, the celebrity boxer, and many others. Everyone who bought the SafeMoon tokens from March 8, 2021, to the present day is covered in the lawsuit.
Lawsuits against Celebs
This is not the first time celebrities have been mentioned in a class-action lawsuit. Previously, celebrities Kim Kardashian and legendary boxer Floyd Mayweather had been named in a class-action lawsuit for their role in a failed crypto project. In the lawsuit, the stars are accused of being part of a pump and dump scheme. Other celebs such as American rappers TI and The Game have been mentioned in lawsuits involving pump and dump schemes. However, TI managed to have his lawsuit dismissed for his role in a crypto project.
Summary
For many people, the crypto sector is still new. As such, when a celebrity promotes a project, it is easy for them to assume that it is a genuine one. However, as previous lawsuits have shown, promotion by famous people does not mean the project will succeed. Everyone has to conduct their research and only invest an amount they can afford to lose. Unfortunately, the crypto sector is still relatively young, and pump and dump operations are still common. A major reason for this is the lack of knowledge by the masses regarding crypto. For now, investors must approach every crypto project with extreme caution, no matter who is promoting it.
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