New York Court Reviews New NFT Fraud Case

user avatar

by Giorgi Kostiuk

2 years ago

On October 9, a federal court in New York received a lawsuit from a group of 36 NFT holders who accused the Meta Eagle Club project and its creator, artist Gal Yosef, of fraud.

Allegations Against Meta Eagle Club

The group claims that the Meta Eagle Club was merely a cover for what they call an "exit scam" in the name of Eden Gallery. The project earned about $13 million from February 2022 to November 2023 by selling approximately 12,000 unique eagle NFTs.

Deceptive Promises and Discrepancies

According to the group, club members were enticed with promises of exclusive privileges and events in the metaverse, which were not delivered. The group asserts that the project's team lacks knowledge in blockchain and smart contract development and doesn't understand basic software development.

Previous Lawsuits Against NFT Frauds

This case isn't unique: on September 19, two OpenSea users filed a lawsuit accusing the platform of selling unregistered securities contracts. In May, a user filed a suit against Dolce and Gabbana for being late in providing NFT products, leading to a loss in their value.

Recent events underscore the importance of cautious investing in NFT and digital asset-related projects. The growing number of lawsuits highlights the need for stricter regulation and better investor information.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

CZ Calls Out Elon Musk Amid Binance Hack

Changpeng Zhao, co-founder of Binance, publicly addressed Elon Musk after his mocking response to a significant hack affecting the exchange.

user avatarMaria Fernandez

RUNE Price Surges Amid Ongoing Investigations into Stolen Cryptocurrency

RUNE's price increased from a local low of 0.59 to approximately 0.67 as investigations into stolen cryptocurrency movements through decentralized platforms, including THORChain, intensified.

user avatarGustavo Mendoza

Trezor Issues Urgent Security Warning for Safe 5 Wallets

Trezor has issued a security warning to customers who purchased Safe 5 hardware wallets through the Southeast Asian reseller CryptoBilis since March 2026, advising them to transfer their cryptocurrency to a newly generated wallet due to a potential hidden cellular implant.

user avatarRajesh Kumar

MEXC Introduces Canton 0Fee Carnival for Traders

MEXC has launched the Canton 0Fee Carnival, enabling users to trade CC spot and futures pairs without fees from October 30 to November 30, 2026, and participate in a prize pool of 1 million.

user avatarMiguel Rodriguez

XRP Ledger Foundation Clarifies Proposal's Routine Nature

The XRP Ledger Foundation clarifies that proposed changes to the token approval process are routine improvements and unrelated to any security incidents.

user avatarLuis Flores

XRP Ledger Developers Propose Tighter Token Approval Controls

XRP Ledger developers propose amendments for stricter token approval controls to enhance protocol safeguards and ensure consistent application of approval requirements.

user avatarArif Mukhtar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.