NFT Holders Sue Eden Gallery for Failing to Deliver Metaverse Promises

A group of 36 non-fungible token (NFT) holders has filed a lawsuit against Eden Gallery and artist Gal Yosef, accusing them of failing to deliver on promised metaverse-based perks tied to their Meta Eagle Club NFT collection. The group alleges the project was a “rug pull” scam, collecting $13 million from the sale of 12,000 unique NFTs between February 2022 and November 2023 but failing to fulfill its promises.

The lawsuit, filed on October 9 in a New York federal court, claims that despite promises of a private metaverse club and exclusive experiences like hot air balloon rides and art events, little progress was made in building the Meta Eagle Club. The complaint also points to the creators’ lack of blockchain or software development expertise, further casting doubt on the project’s legitimacy.

The Meta Eagle Club’s roadmap advertised a range of perks for token holders, including access to luxury experiences and exclusive artwork. However, the plaintiffs claim only a few tickets and artworks were provided, and the budget was reallocated in early 2023 due to market conditions.

The lawsuit seeks damages for common law fraud, unjust enrichment, and violations of New York General Business Law. Eden Gallery and Gal Yosef have yet to respond to the allegations.

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