The SafeMoon lawsuit targeted a lot of celebrities including Jake Paul, Soulja Boy, and others who allegedly led investors in misleading promotions so let’s read further in our latest cryptocurrency news.

The new class-action lawsuit demands a jury trial against the A-List celebrities and social influencers for their participation in the pump and dump scheme relating to the Safemoon tokens. Safemoon was a Binance Smart Chain native cryptocurrency that recruited a number of celebrities to lure investors with misleading promotions. Some of the prominent names roped in by the class action include musicians like Soulja Boy, Lil Yachty, Nick Carter, and Jake Paul.

Accoridng to the lawsuit, SafeMoon, and the subsidiaries mimicked real-life Ponzi schemes by misleading the investors to buy the tokens under the pretext of unrealistic profits. Citing the ecosystem burn and tokenomics as the main driver for SafeMoon price potential, the recruited celebrities convinced the followers to invest in the token. The lawsuit also points to new instances where the recruited celebrities hyped the token enough to increase the trading volume and the price. While SafeMoon witnessed huge growth over a few months and the sudden departure of the company’s executives happened when the token prices started crashing as it can be seen from the data. The lawsuit alleges a slow rug pull attempt from the involved celebrities and implied a slow sell-off of holdings as the trading volume from retail investors remained inflated:

“The Promoter Defendants’ improper promotional activities generated the trading volume needed for all the Defendants to offload their SAFEMOON Tokens onto unsuspecting investors.”

The lawsuit looks to represent and compensate the individuals tht bought SafeMoon tokens since 2021 and were victims of an alleged rug pull attempt. One of the biggest highlights of the Super Bowl were the commercials and amid the craze around the ads, Binance launched a marketing campaign to warn investors against the incoming crypto hype that was fueled by mainstream celebrities.

SafeMoon is a cryptocurrency with a $2.5 billion market cap. It taxes each transaction and redistributes tokens to the holders. If you have scrolled past the #SAFEMOONWALLET hashtag on Twitter, you might not have realized the token has a market cap of $2.5 billion and it had some actual products to go by, despite some claiming it was a Ponzi scheme.