Should the Bored Ape Yacht Club (BAYC) community expect bad weather soon? Possible, if you believe in an initiative of a law firm, which intends to bring together investors who believe they have been scammed by the company Yuga Labs. What do we blame him for?
The Bored Ape Yacht Club (BAYC) has threatened legal action
The initiative is American, and comes from the Scott + Scott law firm. He accuses the company in charge of the Bored Ape Yacht Club, Yuga Labs, of misleading investors. The latter allegedly encouraged investors to buy its products – which lawyers say are financial stocks – promising them a guaranteed return on investment.
But as we know, the prices of Yuga Labs’ non-fungible tokens (NFTs) (and cryptocurrencies in general) have fallen in recent months. The law firm therefore believes that investors have been scammed, and wishes to recover the “lost” funds. His statement explains the following:
“Yuga Labs executives used celebrity promotions to inflate the price of NFTs and the company token [l’ApeCoin (APE) ndlr]promoting growth prospects and substantial returns on investments to innocent investors.“
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No formal complaint has been filed so far. Scott + Scott is, however, trying to bring together enough investors who believe they have been scammed, in order to initiate the legal process. It is aimed at those who have purchased products from Yuga Labs between April and March of this year.
A broader question will then be asked: Are NFTs Financial Securities? If the question seems familiar to you, it is because it has already been asked many times in the ecosystem, for “classic” cryptocurrencies.
The US Securities and Exchange Commission has repeatedly sued projects, including Ripple (XRP), accusing them of similarly defrauding investors. However, we are far from certain that the SEC will validate this Scott + Scott interpretation. Doing so would really oblige them to cover a very large areathat of art.
This type of lawsuit is a refrain in the cryptocurrency industry. Investors who consider themselves scammed sometimes come together to tackle the project they believed in until then. This begs the question personal liability of investorsand that of companies.
We can really blame a field that promotes freedom of choice and research not to have sufficiently protected investors? This is the question that the Yuga Labs trial will partially answer if it takes place.
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published by editions Larousse
Source: Scott + Scott
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