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Investors sue NASCAR over ‘Let’s Go Brandon’ (LGB) token promotion, alleging pump-and-dump scam

Investors sue NASCAR over ‘Let’s Go Brandon’ (LGB) token promotion, alleging pump-and-dump scam
Jordan
Major
6 months ago
3 mins read

The “Let’s Go Brandon” (LGB) cryptocurrency token is the topic of a proposed class-action lawsuit, which states the developers of the “meme coin” and others misrepresented the digital asset in order to artificially inflate its value before selling their share for personal benefit.

Consequently, a court filing has been launched in Florida against the creators of the cryptocurrency, who are accused of engaging in a pump-and-dump scam.

According to the 77-page lawsuit, the plaintiff, Eric De Ford, is suing, alleging that a “pump-and-dump” scheme was perpetrated by the creators of the LGB token and their company, LGBcoin.io.

The firm enlisted NASCAR, Brandonbilt Motorsports, driver Brandon Brown, and conservative figures such as Candace Owens and David J. Harris, Jr., among others.

What was the scheme?

The accusation is they falsely endorsed the meme coin on social media while concealing their ownership of substantial amounts of the asset.

It is alleged in the complaint that investors who purchased the politically charged tokens between November 4, 2021, and March 15, 2022, bought in particularly during that period when it was believed that NASCAR would approve the LGB token’s sponsorship of Brown. However, they suffered significant financial losses as a result of their purchases being made at artificially inflated prices.

“Defendants’ strategy was a success,” the suit reads. “The misleading promotions and celebrity endorsements were able to artificially increase the interest in and price of the LGB Tokens during the Relevant Period, causing investors to purchase these losing investments at inflated prices.” 

The lawsuit relays, ‘Let’s Go Brandon’ is a political expression that many people have used as a veiled means to indicate their dissatisfaction with President Joe Biden.

The token’s value plummeted by 63% between December 30, 2021, and January 4, 2022, when NASCAR officials claimed that they had “changed [their] minds” about enabling the coin’s developers to support Brown.

According to the lawsuit, the LGB token bubble, during which the price of the token increased by more than 500%, burst nearly immediately after NASCAR withdrew its acceptance of the sponsorship.

Let’s go Brandon price analysis

According to the filing, the LGB token had a market value of $0 on January 28, 2022. At the time of writing, the price of the LGB token has not rebounded, and trading volume remains down significantly.

LGB token is built on political marketing and promotional activities, which are commonly carried out by “celebrities” and political commentators to mislead average investors into thinking that the asset would make them rich.

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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