The aftermath of cashing in on the NFT hype.
The speculative bubble of NFTs has burst, and the legal fallout is landing on celebrity promoters.
DJ and producer Steve Aoki, alongside DraftKings co-founder Matthew Kalish, faces a class-action lawsuit alleging they deceptively promoted now-worthless digital assets.
The suit claims they used their social media influence to hype NFTs for the collectibles company MetaZoo without disclosing they were paid partners, leading investors to believe the tokens would appreciate.
Plaintiff Evan Berger, representing a class alleging tens of millions in losses, states he purchased at least 26 NFTs based on their endorsements, only to watch their value evaporate.
This case spotlights the regulatory gray area of influencer promotion during the crypto craze.
For Aoki, who once claimed NFTs outperformed a decade of music income, the lawsuit marks a stark contrast to the peak-era hype, adding a legal chapter to his legacy of high-profile ventures.
