Rap artists Lil Yachty, Soulja Boy, and YouTube personality/Rap Artist/Boxer Jake Paul aka Ben Phillips have all been implicated in a class-action lawsuit that claims they were involved in a good ol’ fashioned pump and dump scam… the twist? It was allegedly a crytpo-currency pump and dump. The three celebrities were named along with SafeMoon LLC and its subsidiaries, SafeMoon founder and CEO Braden John Karony, and other top SafeMoon execs in the lawsuit regarding the SafeMoon token.
“The lawsuit alleges that, in collaboration with these celebrity partners, the other defendants—SafeMoon LLC and its subsidiaries, SafeMoon founder and CEO Braden John Karony, and other top SafeMoon execs—marketed the token while failing to disclose their control over both the company and a significant amount of SafeMoon digital assets available for public trading.
The defendants’ intention behind the celebrity-driven marketing of the SafeMoon token was to eventually sell their holdings for a profit when numbers were high, the filing alleges.”
Is SafeMoon Really That Safe? The Lawsuit They’re Implicated In Says: No.
Unfortunately for those ‘not in the know’ who bought their SafeMoon tokens between March 8, 2021 and now hoping for a ticket to ride have suffered nothing but losses and are claiming economic harm taken from buying the “losing investments”.
“According to the case, the defendants’ “pump and dump” strategy for the SafeMoon token was indeed a success, as the “misleading promotions” and celebrity endorsements artificially increased interest in and trading volume for the asset throughout 2021.”
The case continues to allege that the firm undertook a “multi-layered scheme” causing the price of SafeMoon to rise “astronomically” throughout 2021 only to bottom out in December “amid the departures of a number of executives under less-than-clear circumstances and the company’s failure to launch a much-touted wallet for its cryptocurrency.”
Be advised #SAFEMOONARMY:
We are moving things around to a more secure and insured platform. This has been in the works for a little bit, due to "developments" in other projects, we decided to move now. #SAFEMOON always strives for greater security, quality and accessibility. https://t.co/O9ultdYItD
— John Karony (@CptHodl) February 8, 2022
This was equated to a “slow rug pull” on investors, who over and over again were placated with encouraging statements about the purported value of SafeMoon tokens, promising wild success while company execs and celebrity promoters slowly… gradually…quietly bailed out.
“On December 31, 2021, the price of the SafeMoon Token hit a low of $0.0000006521 per token, an over 80% drop from its height during the Class Period, which it has not been able to recover,” the lawsuit reads. “As of the filing of this Complaint, the trading volume for the SAFEMOON Token has plummeted to around only $60,000.”
There have been no reports of statements regarding the lawsuit from Paul, Lil Yachty or Soulja Boy, SafeMoon LLC or John Karony as of this writing