Bored Ape Yacht Club NFT owners sue Sotheby's, celebs, and parent company as prices plummet


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Facepalm: Buyer's remorse can be something we all experience, especially when paying thousands or millions of dollars for a digital image of a simian. But that's what the Bored Ape Yacht Club NFT craze was all about, and investors are suing parent company Yuga Labs, celebs, and now Sotheby's auction house as they feel tricked into buying them.

During the height of the crypto craze when non-fungible tokens were seen as sound investments and people were paying comical amounts of money for them, Sotheby's sold a set of 101 Bored Ape Yacht Club NFTs for $24.4 million. Ars Technica notes that the price was way above the $12 million to $18 million that pre-auction estimates predicted, and worked out at about $241,000 per image.

Today, Bored Ape NFTs sell for a floor price of $48,672. We've seen plenty of stories about people who payed a fortune for an NFTs a couple of years ago, only to now sell them for a fraction of that original amount: Justin Bieber paid $1.2 million for a Bored Ape, but it was valued at $69,000 at the end of last year. It's not just Bored Apes, either. The person who paid $2.9 million for an NFT of the first-ever tweet, from then-CEO Jack Dorsey, managed to attract a high bid of just $1,871 when trying to sell it in July.

In December, a class-action lawsuit was filed against parent company Yuga Labs and its executives over claims it secretly paid celebrities to promote the NFTs, thereby artificially increasing the digital assets' prices. Dozens of celebrities were named in the suit, including Justin Bieber, Snoop Dogg, Serena Williams, Madonna, The Weeknd, Kevin Hart, DJ Khaled, Gwyneth Paltrow, Paris Hilton, Jimmy Fallon, and Steph Curry.

On August 4, an amended complaint was submitted to the suit that added Sotheby's as a defendant. The amendment claims Yuga colluded with Sotheby's "to run a deceptive auction." Following the $24.4 million sale, a Sotheby's representative described the winning bidder as a "traditional" collector. According to the lawsuit, the buyer turned out to be crypto exchange FTX. The same FTX that imploded and whose founder, Sam Bankman-Fried, is in jail awaiting trial.

The lawsuit claims the sale was "rooted in deception" and lent the Bored Ape NFTs "an air of legitimacy" designed to generate hype and investor interest around the brand.

Yuga Labs and Sotheby's are accused of violating the California Unfair Competition Law, the California Corporate Securities Law, the US Securities Exchange Act, and the California Corporations Code.

Sotheby's told CNN that the "allegations in this suit are baseless, and Sotheby's is prepared to vigorously defend itself." Yuga Labs called the allegations "completely without merit or factual basis."

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I see this word in a lot of scam stories like this one. If these .jpg trinkets were going for >$10K then these "investors" are all rich people. Also the type of people who can afford to lawyer up when they find they were duped.

So.... who cares? Bunch of rich people are ignorant of an obvious scam and their money is now flowing through the economy bumping it up just that little bit more.

Seems like a win for the average person.
IMO the concept of the NFT is useless if the original art was not destroyed. That's the only way for the "purchased" art to have any value. If you can just recreate it again, there's no value in that.
You guys seem to have this all figured out. I on the other hand, can't figure out why anyone over the age of 11, would even want these abominations, let alone hang them on their walls. :confused:
HAHAHAH....we knew it was coming! Nothing more than another pet rock! *****S!

But you actually got a pet rock - easy to feed and care for - that was the beauty of The USA- someone made lots of money on this - no one conned their parents -investment of a lifetime just give me da money - think not so long ago something about a potato - Hard sell in the 70s in NZ

Not sure Zuck could have launched Facebook at University of Auckland - didn't Zuck and Co rip off was it MIT or Harvard servers to boot - anyway some large wealthy institution with massive computer resources , internet costs

A NZ entrepreneur - small local market - straight to world - USA - Los Angeles market , then California market etc
Anyone interested in crypto-anything should read Molly White's excellent blog "Web3 Is Going Just Great".

She tracks the almost-daily chicanery, scams, rug-pulls, thefts etc - usually of tens if not hundreds of millions of dollars. It's amazing that there are still folks who haven't been robbed.
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I have no sympathy for people with so much money they can't think of anything useful to spend it on that they just carry on with their quest to make more and more, never satisfied, more is never enough.
I have no sympathy for people with so much money they can't think of anything useful to spend it on that they just carry on with their quest to make more and more, never satisfied, more is never enough.
Failed sociopaths, (which are abundantly in the majority), wind up in prison. Successful sociopaths become billionaires, owning or leading ginormous corporation.

Alas, sociopaths whom have the additional burden of being pathological liars, are destined to become priests, (or one term presidents).
These people are all losers. They don't want to be accountable for their investment failures, known the risks of this type of investments but still jumped in. The smarter ones probably jumped in, got out and made money.
Simple greed had backfired on them. Good! They deserve nothing.

Every generation has a 'Snake Oil Salesman' duping gullible buyers. This is a great, classic example.

Can't wait for the next silly "It" product and the next generation of dupable investors :)
Suing celebrities for hawking NFTs? How is this any different from a celebrity endorsing any product? If you follow this logic then you'd be suing Michael Jordan because you paid ten times what his shoes are actually worth.