NFT Backfire: A-Lister Celebrities Including Serena Williams and Alexis Ohanian Caught in Fraud Allegations

In the world of sports and entertainment, many celebrities have jumped on the bandwagon of investing and promoting NFTs and cryptocurrencies. However, a recent allegation has surfaced accusing several A-listers, including Serena Williams. The lawsuit alleges that Williams and her husband Alexis Ohanian fraudulently promoted Bored Ape Yacht Club NFTs without disclosing their involvement in the company’s assets.

Other celebrities named in the lawsuit include Gwyneth Paltrow, Jimmy Fallon, Kevin Hart, Madonna, Justin Bieber and Snoop Dogg. The lawsuit is in the US District Court for the Central District of California and accuses the celebrities of committing fraud by persuading amateur traders that the NFTs will increase in value. Traders were not informed of the celebrities’ favored investments in Yuga Labs. As the lawsuit gains attention and NFTs continue to fluctuate in value, the future of celebrity deals in the crypto world remains uncertain.

What is the accusation against Serena Williams and Alexis Ohanian?

The complaint alleges that the entire profit model of this company is based on the promotions of these A-listers. These celebrities receive high compensation or commission to reward the effect that their advertising of the NFT brand has in favor of Yuga values. The complaint further alleges that all these celebrities had to do was convince potential traders that the value of the NFTs would appreciate in the near future.

DIVE DEEPER

According to court documents, most of the celebrities who advertised Yuga Labs’ NFTs, including Serena Williams and Alexis Ohanian, were brought in by talent manager Guy Oseary. The transactions to their accounts were facilitated through the crypto firm MoonPay, in which Guy is an investor.

The plaintiffs sued Oseary, the MoonPay defendants, and the Promoter defendants. The stars are accused of deliberately not disclosing their profitable positions from Yuga Labs. Their support will also benefit MoonPay by increasing demand for the payment service to handle the wave of new investors influenced by these celebrities.

Representatives for Yuga Labs told The Hollywood Reporter that the allegations are “opportunistic and parasitic”. They strongly believe that such “allegations are baseless”. However, this is not the first time Serena has been accused of her involvement with Yuga Labs.

Serena’s NFT debut

In a move that reflects the growing interest of athletes in the non-fungible token (NFT) market, tennis superstar Serena Williams joined Sorare as an advisor in 2022. The player-owned fantasy sports network enlisted Williams to offer advice on the expansion of Web3 initiatives and its entry into women’s sports.

See this story: Serena Williams and Natalie Portman’s success with ACFC is inspiring another female-led group to invest in women’s football

In a press release, Williams expressed her excitement about the potential of NFTs to bring investment and equity to women’s sports. She said, “I think Sorare will set the culture and tone for the future of sports entertainment.” She also announced her personal commitment to the NFT market by purchasing a piece from Bored Ape Yacht Clubwhich she shared on her social media account.