A new class action lawsuit seeks a jury trial against A-list celebrities and social influencers for their alleged involvement in the classic pump-and-dump scheme involving SafeMoon tokens.
SafeMoon, Binance Smart Chain’s own cryptocurrency, has allegedly hired a number of celebrities to lure investors with misleading stocks. Some of the big names involved in the class action include the likes of Nick Carter, Soulja Boy, Lil Yachty and YouTubers Jake Paul and Ben Phillips.
According to the lawsuit, SafeMoon and its subsidiaries were simulating real Ponzi schemes, misleading investors into buying SafeMoon tokens under the pretense of unrealistic profits.
Citing ecosystem “burn-in” and “tokenomics” as a key driver of SafeMoon’s price potential, the recruited celebrities allegedly convinced their followers to invest in the token.
In addition, the lawsuit cites numerous cases where hired celebrities successfully promoted the token enough to artificially increase trading volume and price. While SafeMoon has shown multiple growth over the course of several months, the sudden exit of the company’s senior executives occurred as token prices began to plummet, as evidenced by the chart below (marked in yellow):
The lawsuit alleges that the celebrities involved tried to “slowly pull the carpet”, implying a slow sell-off of assets as retail investor trading volume remains inflated:
“The improper promotional activities of Defendants-Promoters have resulted in the volume of trading required by all Defendants allowing them to sell their SAFEMOON tokens to unsuspecting investors.”
The litigation is intended to represent the interests of all individuals who have purchased SafeMoon tokens since March 8, 2021 and were victims of the alleged attempt to pull the carpet, and receive compensation for them.
RELATED: Stop Listening to Celebrity Financial Advice, Binance Super Bowl Campaign Says
One of the highlights of Super Bowl 2022 was the cryptocurrency ad. Amid the advertising craze, cryptocurrency exchange Binance has launched a marketing campaign to warn investors of the upcoming cryptocurrency hype fueled by popular celebrities.
Superstars ≠ cryptocurrency experts. Music artist @JBALVIN says, “Do your own research.” In 2.13 when the big names try to give you cryptocurrency advice, signal #CryptoCelebAlert and get 1/2222 NFT of basketball star @JimmyButler! Find out more ⬇️https://t.co/3rC7r0uJ8M pic.twitter.com/Hml8AN2aEs— @binance) February 7, 2022
As reported by Cointelegraph, Binance’s ultimate goal with this campaign was to direct new users to its own platform, as well as educational tools for beginners on cryptocurrencies on its website.