A class action lawsuit related to SafeMoon is likely to be filed soon in court. According to the information in the lawsuit, celebrites like Nick Carter, Lil Yachty and Jake Paul among others were recruited to promote as well as sell SafeMoon tokens. Many crypto investors didn’t suspect a scam. Many people made huge profits behind the scenes as part of the sale.
The lawsuit is 60 pages long and according to the complaint, the named parties played a key role in hyping up the value of SafeMoon crypto. Promotion of the crypto token on social media and its value was inflated. The lawsuit also says that SafeMoon and its subsidiaries collaborated with these celebrities to market the token. They did not disclose the extent of their control on the company and the amount of assets that were available for public trade.
The intention was to use celebrities to market the token and eventually sell all holding for a profit when the value was high, according to the lawsuit. The pump and dump strategy for the SafeMoon currency was a big success because of all the celebrity endorsements.
In the meanwhile, every investor who bought these tokens since March of 2021 have suffered losses and economic harm. The lawsuit also lays out a multi-layered scheme (alleged) in which the price of the SafeMoon token rose to astronomical levels in early 2021. The price dropped precipitously by the end of the year when many company executives quit the company under murky circumstances. The company also failed to launch its much talked about wallet for the currency.
All of this activity amounts to a slow case of rug pulling on currency investors. Investors were sent a lot of upbeat statements about the value of the currency and its success in the future. Company execs were selling off their holdings while sending out cheerful information. It is essential to note that class action lawsuits take a long time to get settled in or out of court.