Nelk Boys Sued Over Fraudulent NFT Project

A group of YouTubers known as the Nelk Boys is facing a lawsuit for allegedly failing to deliver on their promises related to a NFT project that raised $23 million. The lawsuit , filed on January 29th by Trenton Smith in a California federal court, targets Kyle Forgeard, John Shahidi, and their associated entertainment companies. It accuses the group of being snake-oil salesmen masquerading as entrepreneurs. Fake Perks According to the complaint, the Nelk Boys offered a few perks for owning an NFT called Metacard but ultimately did not fulfill their promises of business ventures or investment opportunities. The purported perks included discounts on their branded merchandise, access to an event with rapper Snoop Dogg, and a $250,000 giveaway for NFT holders. However, the suit claims that Metacard holders have seen none of the promised returns on their $23 million investment. The lawsuit suggests that the Nelk Boys sold an NFT project that failed to live up to the extravagant expectations set for buyers. Bad To Worse The NFT was marketed under the crypto company Metacard, which is also named as a defendant in the case. According to the suit, 10,000 Metacards were minted in January 2022, with the project selling out in minutes. Each NFT sold for $2,300, but the suit claims these Metacards had no inherent value beyond the promised perks. The lawsuit further alleges that the Nelk Boys promised holders exclusive content, meet-ups, merchandise discounts, and the opportunity to participate in Nelk Boys projects. Smith is seeking damages, restitution, the return of funds generated via NFT sales, and attorney fees. At the time of writing, the Nelk Boys had not responded to requests for comment, and there was no information available regarding their legal representation.