Sotheby’s is being sued by Bored Ape Yacht Club (BAYC) investors. The auction house is named in a recent amendment to a class action lawsuit brought against BAYC creator Yuga Labs. The plaintiffs allege that the company misled investors using celebrity and institutional endorsements.
Previously, a string of celebrities, including Justin Bieber, Jimmy Fallon, and Madonna, have been named in the civil action.
Sotheby’s Helped Lend Legitimacy to Bored Ape Yacht Club NFT Collection, Claims Lawsuit
The allegations against Sotheby’s center on an auction for a lot of 101 BAYC NFTs it held in September 2021. The sale raised $24,393,000 for Yuga Labs, well above the $12–18 million presale estimate.
The lawsuit claims the auction helped Yuga Labs “deceptively promote” the NFT collection by lending it an air of legitimacy.
According to the complaint, following the sale, Sotheby’s head of contemporary art auctions, Max Moore, misled BAYC NFT’s depictions by claiming that the undisclosed buyer was a ‘traditional’ collector. The plaintiffs object to this depiction, alleging that it was, in fact, the crypto exchange FTX that purchased the collection.
Read More: Best Crypto Sign-Up Bonuses in 2023
Celebrity Hype Cools as BAYC Prices Remain Low
The Sotheby’s BAYC auction occurred in the midst of a heated NFT market that has cooled significantly since.
After peaking in 2022, between the first and second quarters of 2023, NFT trading volume dropped 38%. And floor prices for some of the most prominent collections, i
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Author: James Morales
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