Safemoon alleges that the new proposed class-action employs a number of celebrities to lure investors with misleading promotions.
The jury is seeking a new class-action lawsuit against A-list celebrities and social influencers accused of involvement in the classic pump-and-dump scheme of Safeman tokens.
Safemoon, Binance Smart Chain-Native Cryptocurrency has hired many celebrities to attract investors through misleading promotions. Musicians like Nick Carter, Soulja Boy, Lil Yachi, YouTubers Jake Paul, and Ben Phillips are some of the famous names that have emerged from the class action.
According to the current lawsuit, Safemoon and its affiliates buy Safemoon tokens in the name of unrealistic profits, imitating real-life Ponzi schemes and misleading investors.
Habitat ‘Burn’ and ‘Tokenomics’ have been cited as key drivers to the price potential of Safemoon, prompting celebrities to be hired to invest in tokens.
In addition, the lawsuit alleges several incidents in which recruited celebrities successfully hypnotised enough tokens to artificially increase trading volume and price. The following graph (marked in yellow) shows Safemoon achieving multiple growths over several months with the sudden departure of the company’s C-Suite executives and a sharp fall in token prices:
Celebrities involved in the lawsuit allege a ‘slow rug pull’ attempt, indicating a slow sale of holdings as the trading volume continues to grow from retail investors:
“The inappropriate promotional activities of the promoter defendants created the trading volume necessary for all the respondents to upload their Safemon tokens to the unsuspecting investors.”
The case represents and pays compensation to all persons who purchased SafeMoon tokens from March 8, 2021, and were victims of alleged rug pull attempts.