Like crypto, NFTs have not had a great year. In 2021, non-fungible tokens seemed like they would be all the rage, another way for artists to make bank. Then the bottom fell out, with things like hackers stealing millions in NFTs. Now celebrities who promoted a specific brand of NFTs are being sued.
As per The Hollywood Reporter, Jimmy Fallon, Gwyneth Paltrow, and Kevin Hart are just some of the many high-profile names in a proposed class action suit for their role in promoting Bored Ape Yacht Club NFTs. The complaint accuses them of fraud, claiming that the named celebrities misled their followers into buying the tokens, as well as other unregistered securities issued by Yuga Labs. That, it’s alleged, caused buyers to purchase “losing investments at drastically inflated prices.” They, along with the company, are thus accused of fraud.
“The truth is that the Company’s entire business model relies on using insidious marketing and promotional activities from A-list celebrities that are highly compensated (without disclosing such), to increase demand of the Yuga securities by convincing potential retail investors that the price of these digital assets would appreciate,” reads the complaint, which was filed on Thursday.
Fallon played a key role in one of more humiliating episodes in the NFT saga. Earlier this year on The Tonight Show, he and guest Paris Hilton did a bit involving Bored Ape tokens, which led to an awkward response when few in attendance knew what they were talking about. Surely Fallon regretted it then surely he’s regretting it even more now.
Also named in the proposed lawsuit are a number of musicians, including Justin Bieber and Madonna.