Should the Bored Ape Yacht Club (BAYC) community expect heavy weather soon? Possibly, if we believe, an initiative by a law firm that wants to bring together investors who feel cheated by the Yuga Labs company. What are we accusing him of?
The Bored Ape Yacht Club (BAYC) threatened legal action
The initiative is American and comes from the law firm Scott+Scott. He accuses Yuga Labs, the company responsible for the Bored Ape Yacht Club, of misleading investors. The latter would have encouraged investors to buy its products – which lawyers say are financial securities. by promising them guaranteed returns.
But as we know, prices for Yuga Labs non-fungible tokens (NFTs) (and cryptocurrencies in general) have been falling over the past few months. The law firm therefore believes that investors have been scammed, and would like to recover the “lost” funds. His statement is explained as follows:
“Yuga Labs executives took advantage of celebrity promotions to inflate the price of NFTs and the corporate token [l’ApeCoin (APE) ndlr]by offering growth prospects and significant returns on capital to innocent investors.»
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No formal complaint has been filed to date. However, Scott+Scott is trying to rally enough investors who believe they have been scammed to start the court case. It is aimed at those who have purchased Yuga Labs products between April and March of this year.
Then a broader question is asked: are NFTs financial securities? If the question sounds familiar, that’s because it’s been asked many times in the ecosystem for “classic” cryptocurrencies.
The United States Securities and Exchange Commission has sued multiple projects, including Ripple (XRP), accusing them of similarly defrauding investors. However, we are far from certain that the SEC will validate this interpretation by Scott+Scott. This would indeed oblige them to cover a very wide areathat of art, for example.
This type of lawsuit is a refrain in the cryptocurrency industry. Investors who feel cheated sometimes band together to tackle the project they previously believed in. This begs the question personal liability of investorsand those of companies.
Can we really blame an area that encourages freedom of choice and research? not having adequately protected investors? This is the question that the Yuga Labs trial will partially answer when it takes place.
👉 Also read – First successful journey to Otherside, Yuga Labs’ metaverse
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