Sotheby's Faces NFT Lawsuit Over BAYC Sale
Sotheby's was added as a defendant to a lawsuit brought by Bored Ape Yacht Club collectors, alleging that the auction house participated in a "misleading promotion" of the NFTs to deceive investors, according to a first report from The Art Newspaper.
The Deets
- A class-action lawsuit was filed in California against Yuga Labs, Sotheby's added in the amendment.
- The lawsuit claims the auction house endorsed the BAYC NFTs, leading to an artificial value inflation.
- Sotheby's previously auctioned 101 Bored Ape NFTs for $24 million in 2021.
- The complaint indicates that the cryptocurrency exchange FTX, is not a traditional collector as suggested by Sotheby's representative.
The Bulk
Sotheby’s has been added as a defendant in a lawsuit regarding the deceptive promotion of Bored Ape Yacht Club NFTs. This comes in light of the auction where Sotheby’s sold 101 of these NFTs at $24 million, surpassing the pre-sale estimation of $12 to $18 million in 2021. The lawsuit suggests that this sale was instrumental in unjustly elevating the value perception of the NFTs.
The core contention is that Sotheby’s, through this sale and subsequent statements, gave Yuga Labs - the creators of the BAYC NFTs, an undue sense of authenticity among traditional collectors. Max Moore from Sotheby’s, after the sale, hinted that a traditional collector had acquired the NFTs.
However, the lawsuit contradicts this, stating that FTX, a cryptocurrency exchange, was the actual buyer. This alleged misrepresentation, as per the plaintiffs, erroneously signaled that BAYC NFTs had garnered mainstream traction.
🎤 Community Quotes
Sotheby's representatives have called the allegations "baseless."
🧐 Wait, What?
The Sotheby's inclusion comes as an amendment to a class action suit that first spotlighted Yuga Labs and celebrities and their promotion of Bored Ape Yacht Club.
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