Nelk Boys, a group of YouTube content creators, is facing a lawsuit over claims that they failed to deliver on promises tied to their non-fungible token (NFT) project, which raised $23 million.
The lawsuit, filed on January 29 in a California federal court, accuses them of misleading buyers about the benefits of their MetaCard NFTs.
Trenton Smith, who brought the lawsuit, described the group as “snake-oil salesmen masquerading as entrepreneurs”. He alleges that while some small perks were provided, the business opportunities and investment benefits they promoted never materialized.
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The lawsuit states that Nelk Boys released 10,000 MetaCard NFTs in January 2022, which sold out within minutes at $2,300 each. Buyers were led to believe they would gain access to exclusive events, including a meetup with rapper Snoop Dogg, discounts on branded merchandise, and a $250,000 giveaway.
However, Smith claims that NFT holders ultimately received little to no value from their purchases. According to the lawsuit, the NFTs “held no intrinsic value” beyond the promised perks, which were either minimal or never delivered.
In addition to financial losses, Smith argues that Nelk Boys also failed to provide other promised benefits, such as access to exclusive content, special meet-ups, and involvement in future projects. He is seeking compensation, repayment of profits made from the NFT sales, and legal fees.
Currently, on the NFT marketplace OpenSea, the lowest listed price for a MetaCard is 0.034 Ethereum
Meanwhile, a promoter of the crypto scheme Forcount was recently sentenced to 2.5 years in prison. How did the case go? Read the full story.
