A new class action lawsuit calls for a jury trial against A-list celebrities and social influencers for their alleged involvement in a classic pump and dump scheme involving SafeMoon tokens.
SafeMoon, a cryptocurrency native to Binance Smart Chain, allegedly recruited various celebrities to lure investors with misleading promotions. Some of the prominent names tied up by the class action suit include musicians like Nick Carter, Soulja Boy, Lil Yachty, and YouTubers Jake Paul and Ben Phillips.
According to the demand, SafeMoon and its subsidiaries mimicked real-life Ponzi schemes by tricking investors into buying SafeMoon tokens under the guise of making unrealistic profits.
Citing the “burn” and “tokenomy” of the ecosystem as a key factor for SafeMoon’s potential price, the recruited celebrities reportedly convinced their followers to invest in the token.
In addition, heThe lawsuit points to numerous cases where recruited celebrities successfully promoted the token enough to artificially increase trading volume and price. While SafeMoon witnessed multiple growth for several months, the sudden departure of the firm’s C-suite executives was when token prices began to plummet, as evidenced by the chart below (marked in yellow ):
The suit alleviates an attempted “slow start” by the celebrities involved, involving a slow liquidation of holdings as retail investor trading volume continues to inflate:
“The Improper promotional activities of the Defendant Promoters generated the necessary trading volume for all of the Defendants to offload their SAFEMOON tokens to unsuspecting investors.”
The lawsuit seeks to represent and compensate all individuals who purchased SafeMoon tokens since March 8, 2021 and were victims of the alleged rug pull attempt.
One of the highlights of Super Bowl 2022 was the cryptocurrency commercials. Amid the craze surrounding the announcements, cryptocurrency exchange Binance launched a marketing campaign to warn investors against the celebrity-driven crypto hype from the mainstream world.
Superstars ≠ crypto experts.
music artist @JBALVIN says “do your own research”.
On 2.13 when big names try to give you crypto advice — sound #CryptoCelebAlert and grab 1/2222 NFTs of basketball star @JimmyButler!
Learn more ⬇️https://t.co/3rC7r0uJ8M pic.twitter.com/Hml8AN2aEs
—Binance (@binance) February 7, 2022
Superstars ≠ crypto experts.
Music artist @JBALVIN says “do your own research”.
On 2/13, when the big names try to give you crypto tips: ring the #CryptoCelebAlert and get 1/2222 NFT from basketball star @JimmyButler!
As Cointelegraph reported, Binance’s ultimate goal with this campaign was to direct new users to its own platform, as well as introductory cryptocurrency educational tools on its website.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.