Jake Paul, Soulja Boy, and some celebrities in trouble over Pump-Dump Scheme

Celebrities Suits have been filed against Jake Paul, Soulja Boy, and Nick Carter, among others, for their roles in the SafeMoon crypto fraud.


Celebrities Suits have been filed against Jake Paul, Soulja Boy, and Nick Carter, among others, for their roles in the SafeMoon crypto fraud.
Jake Paul and Soulja Boy

According to the allegations, the paid celebrities made "false or deceptive remarks" in order to entice admirers to invest in the digital currency.


SafeMoon LLC, the firm behind the $SAFEMOON token, is being sued, along with a number of celebrity promoters and social media icons, for allegedly misleadingly marketing and selling a phony scheme.


The company is accused of working with celebrities and others to make the investment appear legitimate and attract investors via social media while "disguising their authority" over the tokens being offered.


This type of plan is known as "pump and dump," which is a criminal violation involving the use of false, misleading, or highly exaggerated remarks by well-known persons to inflate the price of a stock or security.


The claimants have filed a class action complaint on behalf of themselves and everyone who acquired tokens between March of last year and yesterday, requesting a jury trial.


Jake Paul and Soulja Boy are accused of being involved in a scam that involves "gradual sell-off of holdings while trading volume from normal investors remains overpriced," according to the lawsuit.


The lawsuit argues that "the Promoter Defendants' unlawful promotional efforts generated the trading volume required for all defendants to unload their $SAFEMOON Tokens onto unsuspecting investors."


According to reports, SafeMoon founder and CEO Braden John Karony, as well as the company's other senior executives, developed the digital token with the goal of selling their holdings for a profit once the numbers hit a specific height.