NFT token holders file a lawsuit against Yuga Labs

Holders of non-fungible tokens have filed a class action lawsuit against the development company Yuga Labs, whose representatives are accused of manipulating investors and making false promises.

According to the lawsuit filed by the Scott Scott law firm on behalf of the disgruntled investors, Yuga Labs advertised its BAYC NFT collection and the Apecoin (APE) cryptocurrency, promising prospects for value growth and great benefits from the purchased tokens, but investors did not receive the expected returns. According to the plaintiffs, the value of the NFT and the digital asset depended only on constant advertising and support from famous people. Thus, the price of the ARE token rose to its all-time high of $ 26.7 between April and June 2022, and then fell by about 82% to $ 4.6.

It is worth noting that many members of the crypto community disagree with Scott’s accusations. For instance, user @briann6211 explained that Yuga Labs developers did not create the ARE token — it was developed by Apecoin DAO, and Yuga Labs representatives adopted it later.

This is not Yuga Labs' first court case, as the company recently filed a lawsuit against artist Ryder Ripps and several of his partners. Yuga Labs accused Ripps and his accomplices of producing and selling «pseudo-NFTs» that devalue the originals. Yuga Labs is seeking an injunction that would prohibit Ripps and his partners from «further interference with the company’s prospective economic relations,» as well as damages and attorneys' fees. Interestingly, Ripps himself expects an apology from the company and $ 100 billion in compensation for the «moral suffering» caused by Yuga Labs to the author of the pseudo-NFT.