NFT Backfire: A-Lister Celebrities, Including Serena Williams and Alexis Ohanian Caught Up in Fraud Allegations

In the world of sports and entertainment, many celebrities have jumped on the bandwagon of investing and promoting NFTs and cryptocurrencies. However, a recent allegation has surfaced accusing several A-listers, including Serena Williams. The lawsuit alleges Williams and her husband Alexis Ohanian to have fraudulently promoted Bored Ape Yacht Club NFTs without revealing their involvement in the assets of the company.

Other celebrities named in the lawsuit include Gwyneth Paltrow, Jimmy Fallon, Kevin Hart, Madonna, Justin Bieber, and Snoop Dogg. The lawsuit stands in the U.S. District Court for the Central District of California and accuses the celebrities of committing fraud by persuading amateur traders that the NFTs would increase in value. The traders were not informed about the celebrities’ beneficiary investments in Yuga Labs. As the lawsuit gains attention and NFTs continue to fluctuate in value, the future of celebrity endorsement deals in the crypto world remains uncertain.

What is the accusation against Serena Williams and Alexis Ohanian?

The complaint alleges that the entire profit model of this company is based on the promotions from these A-listers. These celebrities receive high compensation or commission to reward the effect that their advertising of the NFT brand brings to benefit Yuga securities. The complaint further alleges that all these celebrities had to do was convince potential traders that the value of the NFTs would appreciate in the near future.

Read more: Serena Williams-Invested $4.2 Billion NFT Platform Signs Historic Deal With $9 Billion Soccer League Despite Crypto Downturn

According to court documents, most of the celebrities advertising Yuga Labs’ NFTs, including Serena Williams and Alexis Ohanian were brought in by the talent manager Guy Oseary. The transactions to their accounts were facilitated through the crypto firm MoonPay, in which Guy is an investor.

The plaintiffs accused Oseary, the MoonPay defendants, and the Promotor defendants. The stars are accused of deliberately not revealing their profitable stances from Yuga Labs. Their endorsements would also benefit MoonPay by increasing the demand for its payment service to handle the wave of new investors who are influenced by these celebrities.

Representatives for Yuga Labs told The Hollywood Reporter that the claims are “opportunistic and parasitic”. They strongly believe that such “allegations are without merit”. However, this is not the first that Serena faces accusations over her engagement with Yuga Labs.

Serena’s NFT debut

In a move that reflects the growing interest of athletes in the non-fungible token (NFT) market, tennis superstar Serena Williams joined Sorare as an advisor in 2022. The player-owned fantasy sports network enlisted Williams to offer counsel on its extension into Web3 initiatives and its entry into women’s sports.

Watch this story: Serena Williams’ and Natalie Portman’s Success With ACFC Inspires Another Female Led Group to Invest in Women’s Soccer

In a press release, Williams expressed her excitement about the potential of NFTs to bring investment and equity to women’s sports. She said, “I believe Sorare will be setting the culture and tone of the future of sports entertainment.” She also announced her personal commitment to the NFT market by purchasing a piece from the Bored Ape Yacht Club, which she shared on her social media account.