Among the targeted celebs are YouTube star Jake Paul and American rapper DeAndre Cortez Way, known as Soulja Boy. The lawsuit accuses these celebrities (and many others) of pumping the token through dishonest promotions for the purposes of “rug-pulling.”
A recent SafeMoon class-action lawsuit targeted a number of celebrities who used online media to promote the SafeMoon project. According to the lawsuit, YouTuber Jake Paul, rapper Soulja Boy, and a number of others allegedly used deceptive promotions to draw in buyers.
SafeMoon Promotions are a “Ponzi” Scheme, Claim the Plaintiffs
According to the lawsuit, the plaintiffs have accused the targeted celebrities — most of which are well-known YouTube personalities — of pumping the SafeMoon project and directing poorly-informed fans to become investors. The SafeMoon project and its token, also called SAFEMOON, are native to the Binance Smart Chain (BSC).
The project launched in mid-March 2021 and saw a considerable price rally around April 16th, which led it to an all-time high (ATH) at $0.000012. After that, the token crashed to $0.000004, only to grow again in early May, this time to $0.00001.
The plaintiffs describe the celebrities’ promotions of the token as a “Ponzi” scheme, requesting a trial by jury. Furthermore, the lawsuit listed a number of tweets by the targeted celebrities that were “selling” the token in an attempt to push up its value.
Details About the Lawsuit
Several individuals filed the lawsuit, including Christopher Polite, Bill Merewhauder, and Tim Viane, all of whom claim that the SafeMoon whitepaper presented investors with false information around the project’s tokenomics.
Furthermore, the lawsuit claims that SafeMoon’s rather notable upward thrust was short-lived because the promoters started a “rug-pull,” meaning they sold massive amounts of the token they purchased themselves as soon as its price went high enough.
The sudden lack of demand crashed the token’s price, leaving others who previously bought the token stranded with a next-to-worthless cryptocurrency. At the same time, those who conducted the rug-pull walked away with a boatload of money.
The lawsuit also casts blame on the project behind the token, stating that SafeMoon was continuously engaged in unethical promotions. The project’s executives have not published any official response regarding the lawsuit or public accusations.