NFT holders file lawsuit against Eden Gallery and Gal Yosef
Thirty-six NFT holders filed legal action against artist Gal Yosef and Eden Gallery, accusing the defendants of neglecting to fulfill promises made when selling their NFT collections. Holders claimed that promised benefits, such as access to private clubs in the virtual universe, were never fully delivered.
Source: Galyverse
The lawsuit, filed in New York federal court on October 9, accuses Eden Gallery and Yosef of running a “pull and pull” scam. The plaintiff pointed out that Meta Eagle Club The project, which sold 12,000 eagle NFTs, raised $13 million from February 2022 to November 2023. Many things.
The organization also claimed that the team lacked expertise in blockchain and software development, rendering them unqualified to fulfill the promise.
The Meta Eagle Club is marketed promising different perks, namely access to private jets, hot air balloon rides, events at the Eden Gallery, and exclusive artwork. NFT holders are also committed to joining the Meta Eagle club.
But few of those benefits were actually received, according to the lawsuit. The group claimed that tickets for the advertised event were few and far between. There are also only two Galyverse events and 11 pieces of art signed by Gal Yosef.
On January 12, 2023, voters on Eden Gallery’s Discord decided to reallocate funds for the project to “alternative utilities,” such as maintaining an active market. The shift was attributed to a declining market. According to the organization, this choice resulted in a broken promise.
NFT holders also claimed that Eden Gallery and Yosef promised to provide more art works for the online world Galyverse. Investors are led to believe that this will increase the value of their NFTs. The group now contends the claims were false and caused them financial harm.
Eden Gallery and Yosef were charged with common law fraud and unjust enrichment. They claim that they are paying much more for the NFT than it is worth. In addition to attorneys’ fees, they seek damages and injunctive relief.
There have been previous lawsuits against NFTs. Two OpenSea users filed a class-action lawsuit in September accusing the company of selling unregistered securities contracts. Dolce & Gabbana was the target of a similar lawsuit in May due to delays in delivery of NFT merchandise.
The entire NFT market is still in trouble. According to the NFT Evening News in August, 96% of the 5,000 NFT series studied are expected to disappear by 2024. .
