The largest NFT token developer accused of collusion with American celebrities

A class action lawsuit filed on Thursday alleges that numerous celebrities, including Justin Bieber, Madonna, Steph Curry, and Paris Hilton, violated California state and federal laws when they promoted the Bored Ape Yacht Club NFT token without disclosing their financial relationship with the token’s developer, Yuga Labs.

The lawsuit, filed in the U.S. District Court for the Central District of California, names at least 37 defendants, ranging from Yuga Labs executives to celebrities. Among the defendants is MoonPay, a cryptocurrency payment startup that allegedly participated in the conspiracy.

Although the lawsuit lists 10 allegations ranging from violations of California consumer protection laws to violations of federal securities laws, its 100-page complaint tells more or less the same clear story.

In particular, it describes an elaborate conspiracy devised by the Hollywood elite to enhance the value of Bored Apes through a stream of celebrity hype, the goal of which is to secretly enrich all participants through a scheme of secret payments made through MoonPay.

The lawsuit alleges that manager Guy Oseary — a longtime spokesperson for Madonna as well as Yuga Labs — instructed his extensive network of celebrity friends to publicly endorse Yuga products, including the Bored Apes NFT, in exchange for secret payments.

MoonPay, now valued at $ 3.4 billion, counts many of the celebrity defendants in the lawsuit among its investors, including Bieber, Curry, Hilton, Kevin Hart, Jimmy Fallon, and Gwyneth Paltrow. MoonPay gained notoriety in 2021 by offering a white-glove service that made it easier for celebrity clients to purchase high-value NFTs.

The lawsuit, filed on Thursday, claims that MoonPay, under the guise of an innovative business, was actually a «front company» that secretly transferred payments from Yuga Labs. Yuga Labs, for its part, categorically denies the allegations.

«In our opinion, these allegations are opportunistic and parasitic,» said a company spokesperson, «We firmly believe that they are unfounded and look forward to proving it.

Earlier, Yuga Labs was accused of justifying Nazism.