Yuga Labs, Inc. (“Yuga”) sells a suite of digital assets, including ApeCoin tokens, virtual land in its metaverse, and various collections of non-fungible tokens (“NFTs”). Yuga’s flagship product is the Bored Ape Yacht Club collection of NFTs.
On April 20, 2021, Yuga created the Bored Ape Yacht Club NFT collection, minting a total of 10,000. As the name suggests, the NFTs feature digital images of a cartoon ape with a bored facial expression. The promotional efforts of Yuga related to the Bored Ape Yacht Club and its ecosystem were able to generate hundreds of millions of dollars for Yuga and corporate insiders through the sale and re-sale of the Yuga NFTs.
On March 17, 2022, Yuga issued the ApeCoin token in a public offering, retaining approximately 32% of the total supply for the founders, executives, and other insiders.
On April 30, 2022, Yuga launched a sale of virtual land related to its metaverse project, offering 55,000 plots of virtual land and raising approximately $320 million worth of cryptocurrency. As Bloomberg noted in an article entitled “Bored Ape Metaverse Frenzy Raises Millions, Crashes Ethereum,” this virtual land sale was “the largest offering of its kind.”
On October 11 2022, Bloomberg published an article entitled “Bored-Ape Creator Yuga Labs Faces SEC Probe Over Unregistered Offerings,” reporting that the Securities and Exchange Commission had launched an investigation into Yuga’s suite of digital assets and the sale of unregistered securities.
Since the launch of the Yuga securities, their price has fallen sharply on heavy trading volume.
As a result, Yuga Labs individual investors are now joining together through a class action brought by law firm Scott+Scott, to seek restitution for losses incurred from the purchase of YUGA LABS tokens and NFTs. If you suffered losses in association with the purchase of YUGA LABS tokens or NFTs between April 2022 and June 2022 you are encouraged to reach out to Scott+Scott to learn more about your legal rights.
What You Can Do
If you purchased Bored Ape Yacht Club, Mutant Ape Yacht Club, or Bored Ape Kennel Club non-fungible tokens, ApeCoin tokens, or virtual land in the Yuga metaverse, and have suffered a loss, realized or unrealized, and you wish to discuss this investigation, fill out the form below