The collapse of NFTs was brutal and most of those who trusted them saw their finances hit hard. At the same time, those who emerged victorious were companies and celebrities who took advantage of the fever for these tokens to do business and legally shield themselves. Recently, the controversy reignited after a group of investors sued a renowned auction house, those responsible for the Borde Ape Yacht Club line and included celebrities in their documents.
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Investors who went bankrupt with NFT sue prestigious auction house
According to a report by Ars Technica, a group of investors sued the prestigious art auction house Sotheby’s Holdings Inc. for fraud, claiming that it colluded with the company NFT Yuga Labs to carry out a fixed bid on the Bored Ape line. According to the information, the auction was held in 2021 at the height of the rise of tokens and a “single and secret buyer” acquired more than 100 NFTs paying $24 million for them, a figure that exceeded estimates that went from $12 million to a maximum of $18 million.
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In this regard, the investors recognized that what motivated their demand is the precarious situation that the financial scene of the NFTs is experiencing. In this regard, they pointed out that when they saw the interest and after this auction carried out by a well-known house and the mysterious buyer who paid $24 million USD, they had the motivation to buy their Bored Ape NFTs by paying at least $400,000 USD. The detail is that now their tokens are not worth more than $50,000 USD, according to market prices and assuming that someone is interested in them, but the reality is that they lost most of their money.
In this regard, investors accused Sotheby’s Holdings Inc. and Yuga Labs of colluding to create a fictitious interest and investment environment that would allow them to sell NFTs on the market at a high value in anticipation that the price would fall in the future but that would no longer be his problem. In the same way, the lawsuit includes the names of celebrities in the United States who in one way or another promoted NFTs such as Paris Hilton, Gwyneth Paltrow, Kevin Hart, Snoop Dogg, Serena Williams, Madonna, Jimmy Fallon, Steph Curry and Justin Bieber. .
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