Originally published on: October 11, 2024
A group of NFT holders, totaling 36 members, has taken legal action against an art gallery and artist over unfulfilled promises in the metaverse. The lawsuit alleges that the Eden Gallery and artist Gal Yosef engaged in a ‘rug pull’ scam, failing to deliver on a metaverse-based private club and other perks promised to NFT holders.
The project, known as The Meta Eagle Club, sold 12,000 unique humanlike eagles, raking in $13 million between February 2022 and November 2023. Despite claims of progress and updates from the project team, the NFT holders asserted that the Meta Eagle Club was never built in any substantial way.
The lawsuit further accuses the project developers of lacking experience in blockchain, smart contract development, or software engineering, casting doubt on their ability to deliver on their promises.
Promised entry to the Meta Eagle Club and a range of exclusive perks, NFT holders found themselves with limited access to the advertised experiences, including raffles for Eden Gallery events, hot air balloon rides, private jets, and more. Instead, they received only a few tickets and physical artworks, falling short of the promised rewards.
The NFT holders claimed that the value of their investments was based on false information and that the NFTs had little to no value due to unfulfilled promises. They are seeking damages, injunctive relief, and attorney’s fees from the Eden Gallery and Gal Yosef.
This lawsuit is the latest in a series of legal actions stemming from NFT buyer dissatisfaction, highlighting the risks and challenges faced by investors in the volatile NFT market. As the market continues to evolve, investors are urged to exercise caution and due diligence before making investment decisions.
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