Yug Labs threatens to prosecute investors for allegedly robbing them

Law firm Scott+Scott has threatened to file a class action lawsuit against Yug Labs, the maker of Ape Coin and Bored Ape Yacht Club, alleging that investors were unfairly motivated to buy financial products. And celebrity promoters and endorsements drove up the company’s price. NFTs and Tokens.

According to an announcement from the law firm, unsuspecting investors were prompted to buy NFT and Leadership by Token, which promised huge growth potential and return on their investment through celebrity promoters and endorsements.

Yug Labs wows investors

“After selling millions of dollars of fraudulently promoted NFTs, YUGA LABS launched Ape Coin to attract more investors. As against this), retail investors were left with tokens that lost more than 87% of the increased value on April 28, 2022,” the announcement said.

Individual investors will seek compensation for the loss

It added that individual investors of NFT and App Coin will now come together to compensate for the loss of their funds and asked the losers to reach out to the firm.

However, the company is yet to respond to the allegation.

In response to the proposed lawsuit, the community seemed unimpressed with many users voicing their support for Yug Labs.

Interestingly, the $4 billion company sued a major artist for copyright infringement, claiming that buyers were being scammed into buying similar NFTs and that it was “at the expense of consumers of Yug Labs”. There was a deliberate attempt to harm

The artist, Ryder Rips, was referred to in the lawsuit as “a self-proclaimed ‘ideological artist'” claiming he had created a similar NFT collection of BAYC images that he had not purchased.

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