US Judge Acquits Bieber, Hilton & More In Bored Ape NFT Case

The United States federal Judge has dismissed a class action against top music celebrities, including Justin Bieber, Paris Hilton, Madonna and more. These music celebrities were charged with a class action lawsuit for promoting the Bored Ape Yacht Club, a globally acknowledged non-fungible token collection. In this article, we shall assess what transpired in the corridors of justice about this case.

Fed Judge Dismisses Bored NFT Promotion Case

The latest report confirms that United States District Judge Fernado Olguin has just dismissed a class action lawsuit against prominent music celebrities, including Justin Bieber, Paris Hilton, Madonna, Serena Williams and Steph Curry. These prominent celebrities found themselves in the corridors of justice for publicly promoting the Bored Ape Yacht Club non-fungible token collection.

Launched in 2021, Bored Ape Yacht Club is a globally acknowledged non-fungible token series from the digital asset incubation studio, featuring a limited edition of 10,000 ape profile pictures hosted on the Ethereum blockchain network. Bored Ape NFT is a sister collection to the Bored Ape Kennel Club, Mutant Ape Yacht Club, Koda, Kodamara, Twelvefold and Otherdeed for the Otherside.

In 2022, plaintiffs Adonis Real and Adam Titcher, crypto and non-fungible token investors who purchased the Bored Ape Yacht Club NFT collection from Yuga Labs, filed a lawsuit claiming that these digital assets were unregistered securities. They accused the Yuga Labs team of colluding with Hollywood talent agent Guy Oseary and MoonPay, a platform used to let users buy and sell NFTs and crypto, of misleadingly promoting and selling the financial products.

The plaintiffs, Adonis Real and Adam, named several celebrities as defendants, including Justin Bieber, Paris Hilton, Madonna, Serena Williams and Steph Curry, arguing that they violated the federal and state securities law when they promoted the financial products. “While the promoter publicly touted their high-dollar ‘purchases’ of BAYC NFTs, the truth is that they were given the NFTs for free in exchange for promoting the Bored Ape Yacht Club to an unsuspecting public,” the plaintiffs explained.

NFTs Are Not Securities

The defendants argued that the securities-related claims should be dismissed because none of their digital assets qualify as a “security.” In his order, Olguin found that the plaintiffs failed the three-part test that requires securities to be an investment of money, in a common enterprise with an expectation of profits produced by the efforts of others. Earlier this year, the U.S. Securities and Exchange Commission clarified that many NFT series are collectibles and not securities, especially those purchased for their aesthetic value or novelty.

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