A group of investors sued Auction house Sotheby’s Holdings Inc. for auction sale Nft (non-fungible token) Bored Ape Yacht Club which dates back to 2021 and for which they demand about 5 million in compensation. This is a famous collection consisting of 10 thousand digital art artifacts which depict a drawing of a woman’s face anthropized monkey wear warm hats and glasses of different styles sponsored by several celebrities but this later turned out to be a bad investment. Among the 30 defendants in the lawsuit is a Canadian singer. Justin Bieber, heiress Paris Hilton, Madonna, host Jimmy Fallon, The Weeknd, Snoop Dogg, Kevin Hart and DJ Khaled on charges of advertising as evidence without disclosing this in a transparent manner. The initiators of the class action also claim that the auction house “misleading” NFTs working with creator Yuga Labs to inflate prices. The lawsuit, filed back in December 2022 without Sotheby’s being included in the subpoena, states that the sale was “misleading” and that the auction house was hired by blockchain company Yuga Labs. “to generate investor interest and enthusiasm around the Bored Ape brand.”
NFT price collapse
According to a cryptocurrency market observer CoinGeckoColorful digital illustrations of monkeys can now be purchased for just US$52,445. Until May 2022, the cheapest ones will cost collectors. more than 400 thousand dollars.
He is also in the crosshairs of justice Max MooreSotheby’s NFT specialist from Hong Kong, who wrote on social media after the 2021 sale, which saw 101 NFTs sell for £24.4 million (equal to 31 million dollars) – defined by the “traditional” buyer. However, investors’ lawyers believe the highly publicized mystery buyer was a fraud. a company affiliated with the bankrupt crypto company Ftx. They also add that Moore’s statements, made on behalf of Sotheby’s, “created the erroneous impression that the Bored Ape NFT market has shifted to a wider audience.”
Reactions
In a response sent by email to CNNThe auction house stated that “land the allegations in this lawsuit are baseless and Sotheby’s is prepared to vigorously defend itself.” However, lawyers for Justin Bieber and Paris Hilton did not respond.as well as those from Fallon and Madonna, all are accused of having “feigned interest” in NFTs for the sole purpose of making a profit. Meanwhile, a Yuga Labs spokesperson said in a statement along the same lines as the auction house: “We believe these allegations are completely unfounded.”
The complaint further alleges that Yuga Labs executives collude with Hollywood talent managerGuy Oseary of Bored Apes and others Moonpay cryptocurrency trading app Convince celebrities to promote Bored Ape NFTs while hiding the fact that they were paid for it. Oseary and many of his clients were early investors in MoonPay.which, according to the complaint, was a conduit that managed payments to prominent individuals made in cryptocurrencies and digital assets.
The rise and fall of the phenomenon
The lawsuit covers a vast space of digital assets, including NFTs and the cryptocurrencies commonly used to purchase them. they will go bankrupt after the boom caused by the pandemic. The NFT phenomenon has actually seen prices skyrocket in 2021. The first tweet of platform founder Jack Dorsey (now X Elon Musk) was sold for $2.9 million, and the cost of a video of LeBron James making a dunk reached $200 thousand. Instead, the first NFT virtual artwork sold was sold by Sotheby’s rival Christie’s. “Every Day: The First 5000 Days” created by a digital artist named “Beeple”for a record $69 million.