Steve Aoki Faces Lawsuit Over Allegedly ‘Worthless’ NFTs

Steve Aoki is facing a class action lawsuit related to non-fungible tokens (NFTs) that alleges significant financial losses for investors. The suit also names Matthew Kalish, a co-founder of DraftKings, for their roles in promoting the now-defunct Metazoo NFT series.

Details of the Lawsuit

The lawsuit claims that Aoki and Kalish leveraged their social media platforms to endorse Metazoo NFTs without disclosing they were compensated for these promotions. The lead plaintiff, Evan Berger, states that he has incurred losses amounting to tens of millions of dollars due to this promotion.

Background on Metazoo

Founded in 2000, Metazoo Games LLC initially specialized in tabletop collectible card games. The company branched out into various products, including skateboards and clothing, before venturing into NFTs.

At its peak, a complete set of the Metazoo Coin NFT sold for 20 Ethereum, roughly valued at $80,000 at the time. However, Berger argues that after investing in 26 NFTs influenced by Aoki and Kalish’s endorsements, their value has now plummeted to nothing.

Investor Insights

• Investors’ Rights: Berger emphasized the importance of regulations protecting consumers within the NFT market.
• Influencer Accountability: He highlighted the need for influencers to adhere to specific legal requirements when promoting products.

Berger remarked, “There is a specific set of rules in place to protect consumers, and it’s crucial that influencers know those rules.”

Aoki’s NFT Journey

Aoki became an equity partner in Metazoo in 2021 and collaborated with the company to release a collectible card series for his album, HiROQUEST: Genesis.

Coincidentally, Aoki recently released HiROQUEST 3: Paragon Remixed, which features various tracks. He previously claimed to have earned more from NFTs than from a decade’s worth of music advances.

Interestingly, this is not Aoki’s first legal challenge; he has previously faced lawsuits related to his unique cake-throwing antics during performances.

Conclusion

The ongoing lawsuit against Aoki and Kalish underscores the complexities and risks associated with investing in NFTs. As they navigate this legal matter, it raises questions around influencer marketing and consumer protections in the rapidly evolving digital asset landscape.