A new class action lawsuit is pending against a celebrity and celebrities for their alleged involvement in the classic SafeMoon token pump and dump scheme.

SafeMoon, the original cryptocurrency on Binance Smart Chain, has reportedly hired a number of celebrities to lure investors into deceptive campaigns. Notable names created through collective work include such as Nick Carter, Solja Boy, Lil Yachty, Jack Paul and Ben Phillips on YouTube.

According to the lawsuit, SafeMoon and its subsidiaries simulated realistic Ponzi schemes, misleading investors into buying SafeMoon tokens under the pretext of unrealistic profits.

Referring to the ecosystem’s “burning” and “tokens” as an important factor in SafeMoon’s pricing potential, some celebrities have reportedly convinced their followers to invest in the token.

In addition, the lawsuit mentions several cases where some celebrities managed to increase the volume of the token enough to artificially increase the trading volume and price. While SafeMoon experienced multifaceted growth over several months, the sudden departure of the company’s top executives caused the price of the coin to start falling, as shown in the chart below (highlighted in yellow):

The lawsuit alleges that it was a “half-hearted” attempt to tear the rug out of the celebrities involved, suggesting slow real estate sales as retail investors’ sales remain inflated:

“The defendants’ inappropriate advertising activities resulted in all defendants receiving the necessary trading volume to sell their SAFEMOON tokens to unsuspecting investors.”
The lawsuit seeks to represent and compensate all individuals who have purchased SafeMoon tokens since March 8, 2021 and have been victims of an alleged fraud attempt.

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Source: CoinTelegraph