Steve Aoki is facing a class action lawsuit over his past promotion of NFTs created by MetaZoo.
The case claims that he failed to disclose paid endorsements for digital assets that later became nearly worthless.
According to Billboard, Florida attorney Evan Berger filed the lawsuit.
He argues that Aoki engaged in unfair trade practices and false advertising by promoting the NFTs without proper disclosure.
Read more: Timurnesia Pushes Eastern Indonesian Music Into Policy
How Steve Aoki Involved?
In 2021, Aoki became a part-owner of MetaZoo.
At the time, he actively supported NFTs and even paused one of his DJ sets to showcase a token he had purchased for $859,000.
Soon after, he collaborated with MetaZoo on collectible cards connected to his 2022 album, HiROQUEST: Genesis.
Berger claims that he and many other buyers relied on social media promotions from Aoki and Matt Khalish, co-founder of DraftKings.
Khalish also promoted the NFTs and is named in the lawsuit.
At the time of sale, some of the digital tokens cost more than $150,000.
However, their value has since dropped sharply.
Meanwhile, MetaZoo has shut down, although the company itself is not listed as a defendant.
The plaintiff says he wants to represent thousands of investors who lost money after purchasing the NFT series.
He spoke to Law.com about the importance of consumer protection rules.
He explained that those rules exist for a clear reason: to protect the public.
Furthermore, he emphasized that influencers must follow them at all times.
In his view, these rules are legal obligations, not optional guidelines that can be ignored.
He also noted that similar class action lawsuits have emerged against other companies under comparable circumstances.
The lawsuit further states that, before filing for bankruptcy, MetaZoo generated tens of millions of dollars in revenue.
It claims that a significant portion of that income resulted directly from undisclosed social media endorsements.
As a result, the filing estimates damages could reach tens of millions of dollars.
So far, Aoki has not issued a public response.
Read more: Pharrell Williams Faces New Lawsuit Over Neptunes Royalties
The Controversy of NFT in Music Industry
The controversy reflects a broader debate about NFTs in the music industry.
In 2021, DJ Mag took a closer look at the rise of NFTs.
The publication questioned whether this new technology could truly reshape the music industry.
It also explored the idea that NFTs might return more control to artists.
At the same time, however, the feature raised concerns that the trend mainly fueled crypto speculation and created serious environmental impact.
NFTs rely on blockchain technology to verify ownership and prevent duplication.
At their peak, digital art NFTs attracted massive attention and soaring prices.
Other high-profile figures, including The Chainsmokers and Snoop Dogg, also supported the trend.
However, the crypto market crash in 2022 erased significant value across the sector.
Since then, investors have begun taking legal action.
They have filed lawsuits against several high-profile celebrities.
Among the names mentioned are Justin Bieber and Madonna.
Plaintiffs argue that these figures played a role in promoting digital assets that once carried very high prices.
At the time of writing, courts have not issued final verdicts in those cases.
