Sotheby’s Holdings has been named in a lawsuit led by investors with the Bored Ape Yacht Club against non-fungible tokens (NFT) company Yuga Labs.
The lawsuit stems from a 2021 promotion of Bored Ape NFT’s and follows a price drop for the celebrity-backed items while alleging that the art broker and auction house helped Yuga Labs "deceptively promote" the NFT collection.
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"The allegations in this suit are baseless, and Sotheby's is prepared to vigorously defend itself," Sotheby’s said in a statement sent to FOX Business.
"On background, ARTnews reported in 2021 Sotheby’s specialist Michael Bouhanna saying that there were legacy art collectors participating in the sale – which doesn’t necessarily mean the buyer—and there were 13 total bidders in that sale," the statement added.
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Meanwhile, the Bored Ape Yacht Club has not responded to early inquiries from FOX Business.
Currently, Sotheby’s is just one of 30 defendants named in a lawsuit that also alleges Justin Bieber and Paris Hilton championed the collection while staying quiet about their own financial association to the NFT’s.
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Data compiled by Market Research Future shows the NFT market size will cross the $342.54 billion level by 2032. As of last year, the NFT market was valued at nearly $38.2 billion.
Still, the prices of NFTs are volatile and can trade in tandem with cryptocurrencies. Bitcoin, the largest crypto by market value, has slipped to the $27,000 level but is still up 72% this year.
