MagickDAO class action

Legal claims: 

1. Securities fraud
2. Sale and promotion of unregistered securities
 

Securities fraud
Definition: Securities fraud generally involves the deception of investors or the manipulation of financial markets. Three common forms of securities fraud are insider trading, accounting fraud, and misrepresentations.

Market manipulation or “pump and dump” schemes. These frauds often occur with securities that do not have a lot of trading volume. The aim of the fraudster is to artificially inflate or “pump up” the price of a security.

→ Starting from the 30th of December 2021, multiple buy transactions have been executed by MagickDAO core members, in order to artificially inflate the price of the security.

The above is validated by on-chain data, with multiple associated wallets as purchaser of the security.

→ The fraudster also made fake announcements and partnership claims (False and misleading statements) to artificially pump the price of the security. Examples include:  Interactive Rubik's NFTs, collaboration with Tony Hawk, promise of investor refund.  

→ The fraudster announced publicly that the project would help him recoup his financial debt. Leading investors to believe that the project owner was acting in bad faith. Examples include: (Extracted from telegram):

“Crypto markets have no stability. I have lost thousands in days of Binance. Not fun when you lost $10’000 in one day and your left with an unpaid Amex card and 6 figures of debt.”

“Some people have family to feed”

“Hello my children. Channel your inner Peterson and clean your damn rooms”.

Comparable class actions: