Soulja Boy & Lil Yachty Facing Lawsuit Over Alleged Cryptocurrency Scam

Soulja Boy, Lil Yachty

Soulja Boy & Lil Yachty Facing Lawsuit Over Alleged Cryptocurrency Scam

It looks like Soulja Boy and Lil Yachty are dealing with some pending legal issues.

According to reports, rappers Soulja Boy, 31, and Lil Yachty, 24, are being sued for their alleged involvement in a “pump and dump” cryptocurrency scam, which reportedly aimed to benefit SafeMoon cryptocurrency founder and CEO Braden John Karony and other top-level executives.

Reportedly, Soulja Boy and Lil Yachty were used to promote SafeMoon and increase the number of investors, in exchange for tokens. Other famous people named in the suit and accused of also participating in the scam are YouTubers Jake Paul, 25, Ben Phillips, 29, and former Backstreet Boys member Nick Carter, 42.

According to the suit, these celebs allegedly helped SafeMoon currency commit a pump and dump scheme, which is when scammers will hype up a seemingly worthless commodity to artificially raise its price, then pull before the commodity crashes. Reportedly, SafeMoon was created in March 2021, however, the cryptocurrency token completely crashed a few months later and hit a low of $0.0000006521 per token on New Year’s Eve. The suit reads,

“On Dec. 31, 2021, the price of the SafeMoon Token hit a low of $0.0000006521 per token, an over 80 percent drop from its height during the Class Period, which it has not been able to recover.”

It adds,

“As of the filing of this Complaint, the trading volume for the SafeMoon Token has plummeted to around only $60,000.”

Reportedly, as Soulja Boy, Lil Yachty, and other celebrities attached to SafeMoon were driving up its investor numbers, the company was notifying them of “token burns.” Token burning is a strategy used to influence the price of a token/coin in the market. During this process, users can remove tokens from circulation, which reduces the number of coins in use.

Lil Yachty

According to reports, as tokens were “burnt,” more investors bought in, which caused the price of the remaining tokens to inflate. Allegedly, when the value began to drop, another “burn” was implemented to increase the value once again. Soon the trading volume eventually fell and the company’s chief technology officer Hank Wyatt resigned and sold his tokens to investors prior to the failed launch of SafeMoon’s digital wallet.

The lawsuit claims that Wyatt would have or should have known that the wallet was not ready to launch. The next day SafeMoon COO Jack Haines-Davies also resigned, which dropped the price of the tokens from $0.000000153 to $0.00000119.

What are your thoughts on this entire situation? Tell us below!

[VIA 1,2]