Jake Paul, Soulja Boy, and a slew of other celebrities are being sued for their involvement in the cryptocurrency SafeMoon, with claims that the celebs were making “false or misleading statements” to investors on social media.
A trio of plaintiffs is suing SafeMoon LLC, the company behind the SAFEMOON Token, along with several “celebrity promoters,” including Jake Paul and Soulja Boy, for allegedly misleadingly promoting and selling it.
They accused the company of collaborating with these celebrities and others to make “false or misleading statements” to investors on social media while “disguising their control” over the tokens available.
Describing it as a “scheme,” the plaintiffs claimed the “misleading promotions” and “celebrity endorsements” artificially increased the interest in and price of the tokens, causing investors to buy them at inflated prices.
They also asserted the company conspired with promoters to sell tokens for profit. This is commonly called a pump-and-dump scheme, something the plaintiffs allude to in their filing.
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They brought the class action lawsuit on behalf of themselves and all investors who purchased the tokens between March 8, 2021 and February 17, 2022. The plaintiffs have also requested a trial by jury.
The plaintiffs are seeking damages and restitution for what they believe they lost by investing in SafeMoon. This includes monetary relief, payment of legal fees and costs, and more.
Safemoon’s developers have publicly maintained the token’s launch was not a “scheme.” The developers moved to a second-version of the token in January 2022.
Neither the company nor the celebrities mentioned in the legal document have publicly addressed the claims. We’ll update this article with more information if they do.
