As reported by ClassAction.org, a lawsuit claims, Soulja, Yachty, Jake Paul, as well as musician Nick Carter and YouTuber Ben Philips, were recruited by Crypto company SafeMoon to misleadingly promote and sell the cryptocurrency token V1.
It alleges that the endorsements made by the celebrities were intended to artificially inflate the currency’s value, allowing SafeMoon CEO Braden John Karony and other executives to sell their holding for a profit while the price was high.
The suit says that this ‘pump and dump’ strategy saw the value of the token rise “astronomically” after its creation in March 2021.
It also alleges that SafeMoon’s promise to create a cryptocurrency wallet that would provide investors a “better place” to hold their tokens helped further inflate the tokens value.
Neither Soulja nor Yachty have commented yet on the suit.