What's Happening?
Steve Aoki, a prominent DJ and music producer, is facing a class-action lawsuit due to his Instagram promotions of MetaZoo, a trading card and nonfungible token (NFT) company. Aoki, who became a part-owner of MetaZoo in 2021, collaborated with the company to release a collectible card series alongside his 2022 album, HiROQUEST: Genesis. The lawsuit, filed by Florida attorney Evan Berger, claims that Aoki's Instagram posts did not disclose that he was compensated for promoting MetaZoo's products. The complaint alleges that these promotions led consumers to purchase MetaZoo products at inflated prices. The lawsuit also targets Matt Kalish, co-founder of DraftKings, for similar undisclosed endorsements. MetaZoo, which went bankrupt in 2024 and was sold
to GameQbator Labs, is not named as a defendant. The lawsuit seeks to represent thousands of individuals who purchased MetaZoo cards and tokens, which have significantly depreciated in value.
Why It's Important?
This lawsuit highlights the ongoing legal challenges surrounding celebrity endorsements of NFTs and other digital assets. The case underscores the importance of transparency in social media promotions, especially when financial transactions are involved. The outcome could set a precedent for how influencers and celebrities disclose their financial interests in the products they promote. The lawsuit also reflects broader issues in the NFT market, which saw a significant downturn following the crypto market crash in 2022. This downturn has led to numerous legal actions against celebrities who promoted NFTs without clear disclosure of their financial ties, potentially affecting the credibility and future of influencer marketing in the digital asset space.
What's Next?
The lawsuit against Steve Aoki and Matt Kalish could lead to increased scrutiny of celebrity endorsements on social media, particularly in the realm of digital assets like NFTs. If the court rules in favor of the plaintiffs, it may prompt stricter regulations and guidelines for influencers regarding disclosure of paid promotions. This could also influence how companies engage with celebrities for marketing purposes, potentially leading to more transparent and regulated promotional practices. The case may also impact ongoing and future lawsuits involving other celebrities who have faced similar allegations, such as Justin Bieber and Madonna, who are involved in a pending case related to the 'Bored Ape' NFT collection.
