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id: 513

Yuga Labs, Inc. : ApeCoins, NFTs Securities Losses Case

C.D. California
Case number
23 Apr 2021
Class period Start
04 Aug 2023
Class period End
On October 11, 2022, Bloomberg published an article entitled “Bored-Ape Creator Yuga Labs Faces SEC Probe Over Unregistered Offerings,” stating that the SEC had launched an investigation into Yuga’s suite of digital assets and the sale of unregistered securities.

Yuga Labs, Inc. sells a suite of digital assets, including ApeCoin tokens, virtual land in its metaverse, and various collections of NFTs. Yuga’s flagship product is the Bored Ape Yacht Club collection of NFTs. The products of Yuga, including Apecoin, are unregistered securities that put the extra risk of damages on their Holders and make its market, promotion, and distribution illegal.
  • The executives at Yuga and a highly-connected Hollywood agent Oseary devised a plan to leverage their vast network of A-list musicians, athletes, celebrity clients, and associates to promote and sell Yuga Financial Products.
  • Yuga’s flagship NFT collection, the Bored Ape Yacht Club rely heavily on the perception that “joining the club” (i.e., buying a BAYC NFT) brings investors status and provides them access to events, benefits, and other lucrative investment opportunities exclusive to BAYC holders.
  • To make the promotion of, and subsequent interest in, the BAYC NFTs appear to be organic, the Company needed a way to discreetly pay their celebrity cohorts. To do this, Oseary attracted MoonPay.
  • Oseary’s venture capital firm, Sound Ventures, was one of the early investors in MoonPay, along with, inter alia, Justin Bieber, Paris Hilton, Jimmy Fallon, Gwyneth Paltrow, Serena Williams, Austin Post, Thomas Pentz, Calvin Broadus, Jr., Kevin Hart, Alexander Pall, Andrew Taggart, Wardell Stephen Curry II, Nayvadius Cash, and Abel Tesfaye.
  • The promotional campaign was wildly successful, generating billions of dollars in sales and re-sales. The manufactured celebrity endorsements and promotions regarding the launch of an entire BAYC ecosystem (the so-called Otherside metaverse) were able to artificially increase the interest in and price of the BAYC NFTs.
Since the launch of the Yuga securities, their price has fallen dramatically seriously damaging Investors and Consumers.
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Breach of Fiduciary duty
Suspected Party
Investment Bank
Service Provider
Security Type
Crypto Asset
Trade Direction
Shock Event Date
19 December 2022
Filing date
08 December 2022
Hon. Fernando M. Olguin
Collecting participants…


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