Whether cryptocurrencies are securities has been the subject of debate over the past week, from SEC chairman Gary Gensler to co-founders Charles Hoskinson and Vitalik Buterin. This issue is now involved in NFTs. According to the latest news, 2 well-established altcoin projects are facing class action lawsuits.
2 altcoins preparing for class action over alleged selling unregistered securities
A new class action lawsuit has been filed in the U.S. District Court of New Jersey against Celsius. US law firm Bragar Eagel & Squire is taking the altcoin project to court, specifically on behalf of all investors who purchased CEL between February 9, 2018 and July 13, 2022. The class action will process that crypto lending platform Celsius generates income through lending and borrowing. The lawsuit also refers to the platform’s native cryptocurrency CEL token as “securities”. Investors gathered on social media after the crypto company announced that it went bankrupt in June. The platform, which stopped its operations during this period due to excessive volatility, left its users alone.
The first bankruptcy court for Celsius took place on Monday last week…
Moments ago, @CelsiusNetwork filed voluntary petitions for Chapter 11 protection and announced that the company initiated a financial restructuring. https://t.co/vf5wsT6TMp
— Celsius (@CelsiusNetwork) July 14, 2022
Celsuis lawyers said the company has half a million creditors with more than $5 billion in debt. Information on the liquidity crisis first emerged when Celsius announced on June 12 that it had stopped all customer withdrawals due to “extreme market conditions”. On July 14, she formally petitioned the New York (SDNY) Bankruptcy Court for Chapter 11 bankruptcy protection. For Celsius’s creditors, the majority of whom are individual investors, court documents paint a troubling picture. A similar class action lawsuit is now being prepared at Bored Ape Yacht Club and ApeCoin.
Class action shock to Bored Ape Yacht Club (BAYC) crew
Law firm Scott+Scott claims that Yuga Labs offers “uninformed investors” the chance of great return on investment. A proposed class action lawsuit alleges that Yuga Labs’ community, Bored Ape Yacht Club, “inappropriately encouraged” to purchase NFTs and project-linked ApeCoin.
The class action lawsuit led by law firm Scott+Scott was published Thursday. Famous supporters of Yuga Labs claimed that BAYC NFTs and APE were used to “inflate the price”.
Details on Scott+Scott’s official website read:
Yuga Labs investors have been improperly encouraged to purchase financial products marketed by Yuga Labs (YUGA LABS), namely Ape Coin and swap NFTs of Bored Ape Yacht Club. The YUGA LABS leadership used celebrity backers and endorsements to inflate the price of the company’s NFTs and tokens…After selling millions of dollars of fraudulently promoted NFTs, YUGA LABS launched Ape Coin to further deceive investors…As a result, Yuga Labs individual investors are coming together through a class action lawsuit filed by law firm Scott+Scott for compensation for losses resulting from the purchase of YUGA LABS tokens and NFTs.
Law firm seeks hurt investors
Scott+Scott is currently looking for BAYC NFTs and affected investors who suffered losses in Apecoin from April to June. The continuation of the above text states:
If you suffered losses in connection with the purchase of YUGA LABS tokens or NFTs between April 2022 and June 2022, you are encouraged to contact Scott+Scott to learn more about your legal rights.
During this time frame, APE fell roughly 82.5% to $4.66 at the end of June. The base price of the collection has dropped from 151.5 ETH to 92.9 ETH. We will be relaying the developments from the case from Kriptokoin.com.
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