With cryptocurrency becoming extremely popular over the last few years, there has been a large uptick in brand new projects. Of course, the crypto space is not regulated, which makes it the Wild West as tech entrepreneurs look to make a quick buck off of impossible promises.
According to Complex, American rappers Lil Yachty, Soulja Boy, and even the infamous Jake Paul are caught up in a class-action lawsuit claiming they were involved in a pump and dump cryptocurrency scheme.
The rappers are among the defendants named in a 60-page complaint over the SafeMoon token.
The lawsuit claims that SafeMoon founder and CEO Braden John Karony recruited celebrities to promote the token, artificially inflating its value.
It was then learned that allegedly Karony and other key executives controlled vast amounts of the token, which they never disclosed to the public. Thanks to the celebrity endorsements, the token’s value rose by 875% throughout 2021.
However, several executives left the company the same year as the value of the SafeMoon token began to crash by December 2021. The token had lost 80% of its value, and the company failed to deliver on various projects, including a hyped-up crypto wallet.
The lawsuit claims executives did a “slow rug pull” on investors, leaving them with massive losses.