YouTubers Kyle Forgeard and John Shahidi, known as the Nelk Boys, are asking a California court to dismiss a lawsuit accusing them of misleading buyers in their Metacard non-fungible token (NFT) project.
The Metacard NFTs launched in January 2022, with 10,000 tokens priced around 0.8 ETH
The case, brought on January 29 on behalf of people who bought the NFTs, claims the two promoted the Metacards by promising special perks and access to a private community, which the plaintiff said never fully materialized.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
How to Create an NFT: Easiest Way (Animated Explainer)
It also accuses them of continuing to share misleading updates after the sale, in an attempt to prevent buyers from realizing they had been misled.
However, the Nelk Boys’ legal team stated that the lawsuit does not meet basic legal standards for fraud. Their lawyers argued that the plaintiff was offered a full refund with interest after the NFT market fell—and turned it down.
The lawsuit also fails to name any specific false statements made before the Metacards were sold. Their attorneys wrote:
Plaintiff may regret his purchase—and turning down a full refund. But regret does not plead fraud. The complaint should be dismissed.
Meanwhile, Perplexity, an AI-powered search company, recently took a stance in the ongoing antitrust case against Google. What did the company say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
