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
$3,238.37
, worth around $111—far below the original purchase price.
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.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
