- Eden Gallery has refuted claims that it caused NFT holders to lose $13 million
- Eden Gallery told the court that the losses were due to unfavorable conditions in the general NFT market
- The NFT holders claim the project’s creators conducted a rug pull
Eden Gallery, the creators of Meta Eagle Club NFTs, have distanced themselves from claims that they caused NFTs’ holders to incur $13 million in losses. The NFT creators argued that the losses were due to unfavorable conditions in the overall NFT market, adding that the collectibles weren’t “an investment product.” Meta Eagle Club NFT holders had gone to court arguing that the project enticed them to purchase the collectibles and its creators later abandoned the project, a common phenomenon in the NFT and crypto world.
NFT Holders “May Have Buyers’ Remorse”
According to Law360, Eden Gallery filed a motion in a New York court to dismiss the NFT holders’ case noting that the collectors may also be remorseful after their actions failed to attract the perceived gains.
The Meta Eagle Club NFT creators added that “New York’s consumer protection laws do not protect out-of-state investors,” which suggests that most of the 36 collectors who went to court were not from New York.
The plaintiffs are seeking up to $70,219 per individual, which Eden Gallery argued is lower than the $75,000 required for such a case to be heard in a New York court.
NFTs’ Value Dropped From $1,800 to $17
Eden Gallery told the court that it released its collectibles when the NFT market was in a bullish mood in “early 2022.” The bullish momentum later turned bearish causing the NFTs value to fall from $1,800 to $17.
The NFT holders sued Eden Gallery in October last year claiming that the project’s creators had promised to develop a metaverse-based club, something they haven’t done more than two years down the line.
We filed a federal lawsuit on behalf of 36 NFT collectors against Eden Gallery and others related to the Meta Eagle Club NFTs.
Read the full complaint here: https://t.co/Fqxss7qygG
— Burwick Law (@BurwickLaw) October 10, 2024
With Eden Gallery raising valid reasons why the case should be dismissed, it’s to be seen how the court will decide the case.
