Bored Ape Yacht Club Creators Are Accused of Pumping NFT and APE Token

Law company Scott+Scott is reportedly preparing to file a class action lawsuit against Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) collection of non-fungible tokens and the ApeCoin project token (APE).

According to the statement, the company “unreasonably encouraged” investors to buy “its financial products” and allegedly used celebrity ads to pump NFT and token prices.

The lawyers have said:

“Once it was revealed that the touted growth was entirely dependent on promotion, retail investors were left with tokens that lost over 87% of the inflated price on April 28, 2022.”

The company is at the preliminary stage of searching for participants in the class action, so the complaint has not yet gone to court.