Snoop-Dogg, Justin Bieber Among Other Celebs Endosers Allegedly Conspired in NFT Scheme

• A slew of celebrities including Justin Bieber, Madonna, StephCurry, and Paris Hilton violated state and federal laws when they promoted BoredApeYacht Club NFTs.
• This is not the first time Scott+Scott attorneys have attempted to wage war on celebrity endorsements in the crypto space.

A class-action lawsuit has been filed against a group of celebrities, including Jimmy Fallon, Madonna, and Justin Bieber, for allegedly misleading fans into buying Bored Ape Yacht Club (BAYC) NFTs.

The lawsuit, filed in Los Angeles federal court, alleges that the celebrities promoted BAYC NFTs without disclosing that they were paid to do so. The lawsuit also alleges that the celebrities used a company called MoonPay to secretly funnel payments from BAYC’s creators, Yuga Labs.

The lawsuit was filed by two investors, Adam Titcher and Adonis Real. Titcher purchased a Mutant Ape Yacht Club NFT in August 2021 for 5.3 ETH (about $17,000 at the time) and minted an Otherdeed for Otherside #16235 on OpenSea in April. Real purchased an undisclosed amount of ApeCoin on Coinbase.

The lawsuit alleges that both Titcher and Real purchased the NFTs in reliance on the celebrities’ misleading promotions. The lawsuit also alleges that the celebrities’ promotions caused the price of BAYC NFTs to increase artificially.

The lawsuit seeks damages for the investors, as well as an injunction preventing the celebrities from promoting NFTs without disclosing that they are paid to do so.

The lawsuit is the latest in a series of legal challenges facing the NFT market. In October, the U.S. Securities and Exchange Commission (SEC) launched an investigation into whether NFTs are securities. The SEC’s investigation is ongoing.

The lawsuit against the celebrities is also a sign of the growing scrutiny that NFTs are facing from regulators and investors. As the NFT market continues to grow, it is likely that we will see more lawsuits like this one.

The lawsuit is a reminder that investors should always do their own research before investing in any asset, including NFTs. Investors should also be wary of celebrity endorsements, as they may not always be truthful.