- A class-action lawsuit has been filed against the creators of the Metacard NFT project, who have been labeled “snake-oil salesmen”
- YouTubers Kyle Forgeard and John Shahidi are among those targeted by aggrieved buyers
- Plaintiffs allege that the defendants misled investors by making promises about Metacards that never materialized
A legal storm is brewing in the NFT world as social media influencers Kyle Forgeard and John Shahidi face a class-action lawsuit over their Metacard NFT project. The lawsuit, led by plaintiff Trenton Smith, accuses the Nelk Boys’ founders of engaging in fraudulent business practices through the sale of their Full Send Metacard NFTs. The lawsuit alleges that none of the business ventures promised by the creators ever materialized, leaving their purchases worthless.
The Rise and Fall of Metacards
The lawsuit revolves around the launch of the Full Send Metacard project in January 2022, an NFT venture that sold out within minutes and raised approximately $23 million. The NFTs were marketed as exclusive access passes to a growing ecosystem of business ventures, including lounges, casinos, gyms, restaurants, and events.
Forgeard, a co-founder of Nelk and Full Send, openly promoted Metacards as an investment, stating on a Full Send Podcast episode:
I think the NFT shit is so cool because to me, it’s like a modern-day or a decentralized way for people to invest in us.
However, the lawsuit alleges that none of these promised business ventures ever materialized; instead, Metacard holders reportedly received only a handful of perks, including a one-time discount on Full Send supplements, access to a single event featuring rapper Snoop Dogg, and sporadic giveaways of merchandise. None of the high-value investments or partnerships came to fruition, leaving NFT holders with worthless assets.
“Rug Pull” Allegations Surface
The lawsuit claims that Forgeard, Shahidi, and their businesses engaged in fraudulent misrepresentation, luring buyers into purchasing Metacards under false pretenses. It describes the project as a classic “rug pull”—a common scam in the cryptocurrency space where developers hype up a project, raise funds, and then abandon the initiative without delivering on promises.
According to the lawsuit, Metacard holders started raising concerns when months passed with no updates on the promised businesses. When questioned in early 2022, Forgeard responded in the Nelk Discord community:
Making sure our ventures are as profitable as possible so when we cut y’all in, it’s worth it.
Despite these reassurances, investors allege that nothing substantial was ever developed. The lawsuit points out that Metacard’s resale value has plummeted by over 75%, and that Forgeard and Shahidi have since abandoned communication with NFT holders.
Founders Face Litanty of Charges
The class-action lawsuit includes multiple claims, including breach of fiduciary duty, fraud, and violations of the California Consumer Legal Remedies Act. The plaintiffs are seeking compensatory and punitive damages, along with an injunction to prevent further deceptive NFT sales by the defendants:
Defendants capitalized on their loyal fan base, using their influence to promote Metacards as an investment opportunity. Yet, after collecting millions, they failed to deliver on their promises, leaving investors with worthless assets.
Furthermore, the complaint alleges that the Metacard team manipulated NFT pricing and sales tactics by limiting information, withholding project details, and creating artificial demand. The plaintiffs argue that this deception misled buyers into believing they were investing in an exclusive, high-value opportunity.
Forgeard, Shahidi, and the other named defendants have not publicly responded to the lawsuit. The case will now move forward in court, where the plaintiffs will need to prove that the defendants knowingly misrepresented the Metacard project to induce sales, with a victory potentially costing the founders millions in damages.