{"id":18484,"date":"2022-02-20T13:00:15","date_gmt":"2022-02-20T12:00:15","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=18484"},"modified":"2022-02-20T13:00:21","modified_gmt":"2022-02-20T12:00:21","slug":"jake-paul-and-other-celebrities-face-class-action-lawsuit-involving-safemoon-scam","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/jake-paul-and-other-celebrities-face-class-action-lawsuit-involving-safemoon-scam\/","title":{"rendered":"Jake Paul and other celebrities face class-action lawsuit involving SafeMoon scam"},"content":{"rendered":"\n
SafeMoon LLC<\/a> and some “celebrity promoters” are being sued by a group of plaintiffs for participating in a pump-and-dump operation involving SafeMoon tokens. The new class action seeks a jury trial for celebrities and social influencers of which Jake Paul, Nick Carter, and others have been accused.<\/h5>\n\n\n\n
\"Jake<\/figure><\/div>\n\n\n\n

SafeMoon, a Binance Smart Chain-native cryptocurrency\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, is accused of enlisting the help of a number of celebrities to entice investors with deceptive marketing. Nick Carter, Soulja Boy, Lil Yachty, and YouTubers Jake Paul and Ben Phillips are among the celebrities named in the class-action lawsuit.<\/p>\n\n\n\n

SafeMoon and its subsidiaries, according to the lawsuit, imitated real-life Ponzi schemes by deceiving investors into purchasing SafeMoon tokens under the guise of unachievable earnings.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

About the lawsuit<\/h2>\n\n\n\n

The accused celebrities allegedly persuaded their fans to buy in SafeMoon by citing the ecosystem's ‘burn' and ‘tokenomics' <\/a>as significant drivers for the token's price potential.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Furthermore, the lawsuit <\/a>cites multiple occasions in which the hired celebrities were effective in artificially inflating the token's trading volume and price.<\/p>\n\n\n\n

While SafeMoon experienced multifold growth over several months, the sudden departure of the company's C-suite executives coincided with a drop in token values, as shown in the graph below (marked in yellow):<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

The lawsuit claims that the celebrities engaged attempted a “slow rug pull,” meaning a gradual sell-off of shares while trading volume from normal investors remains inflated:<\/p>\n\n\n\n

\u201cThe Promoter Defendants\u2019 improper promotional activities generated the trading volume needed for all the Defendants to offload their SAFEMOON Tokens onto unsuspecting investors.\u201d<\/p><\/blockquote>\n\n\n\n

The lawsuit seeks to represent and recompense anyone who purchased SafeMoon tokens from March 8, 2021, and were victims of the alleged rug-pulling<\/a> attempt.<\/p>\n\n\n\n

Binance's Super Bowl crypto advert<\/h3>\n\n\n\n

The crypto advertisements were one of the main attractions of Super Bowl 2022<\/a>. In the midst of the media frenzy surrounding the ads, crypto exchange Binance started a marketing effort to caution investors about the impending crypto euphoria fed by mainstream celebrities.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Binance's<\/a> ultimate goal with this campaign was to drive new users to its platform as well as to its website's instructional crypto primer products.<\/p>\n","protected":false},"excerpt":{"rendered":"

SafeMoon LLC and some “celebrity promoters” are being sued by a group of plaintiffs for participating in a pump-and-dump operation involving SafeMoon tokens. The new class action seeks a jury trial for celebrities and social influencers of which Jake Paul, Nick Carter, and others have been accused. SafeMoon, a Binance Smart Chain-native cryptocurrency , is […]<\/p>\n","protected":false},"author":12,"featured_media":18491,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81,21],"tags":[5705,7327,5556,6186],"class_list":["post-18484","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-altcoin-news","category-news","tag-celebrities-2","tag-class-action-lawsuit","tag-safemoon-2","tag-scam-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/02\/image-267.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/18484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=18484"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/18484\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/18491"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=18484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=18484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=18484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}