A lawsuit alleges that the Metacard NFT initiative “failed to deliver” to purchasers, accusing the Nelk Boys of being “snake-oil salesmen.”
In a lawsuit, the Nelk Boys, a collective of YouTubers, have been accused of failing to fulfill the full extent of their contractual obligations regarding a non-fungible token project that generated $23 million.
Trenton Smith filed a complaint in a California federal court on January 29 against Kyle Forgeard, John Shahidi, and their numerous entertainment enterprises. The complaint states that the group was “snake-oil salesmen masquerading as entrepreneurs.”
The lawsuit alleged that they provided “a few ‘perks'” as a result of owning the NFT MetaCard, but ultimately did not provide any of the promised business ventures or investment opportunities.
The Nelk Boys purportedly provided discounts on their own-branded merchandise, admittance to an event featuring rapper Snoop Dogg, and a $250,000 raffle to NFT holders.
But ultimately, the petition alleged that MetaCard holders have not received any of the promised return on the $23 million investment they contributed.
The complaint alleged that the Nelk Boys minted 10,000 NFTs in January 2022, with the project selling out in minutes, using their crypto company MetaCard, which is also a defendant in the suit.
Smith’s lawsuit claimed that “MetaCards held no intrinsic value” beyond the amenities and benefits to which the NFT was intended to grant access, despite the fact that each NFT was sold for $2,300.
Smith also claimed that the Nelk Boys assured holders access to exclusive content, meet-ups, discounts on merchandise, and the opportunity to participate in Nelk Boys initiatives.
A spokesperson for Full Send, a clothing brand affiliated with Nelk Boys and also cited in the lawsuit, informed Cointelegraph that the company had organized “numerous in-person events” for MetaCard holders in recent years, in addition to providing discounts and early access to merchandise launches.
The spokesperson also encouraged MetaCard holders to participate in Bored Jerky, a beef jerky business.
Also Read: Russian Governor Wants to Ban Bitcoin Mining All Year
Wallets