LGBCoin (LGBCOIN Token) Fraud and Pump-and-Dump Case

The court has ruled on whether the plaintiffs are certified as a class.

M.D. Florida

Court

6:22-cv-00652

Case number

11/04/2021

Class period Start

03/15/2022

Class period End

LGBCOIN investors filed a claim against LGBCoin, LetsGoBrandon.com Foundation, and related individuals for promoting and dumping worthless crypto tokens.
After celebrity-backed promotions and a failed NASCAR sponsorship, the value of $LGBCOIN plummeted, leaving investors with near-worthless tokens.
$LGBCOIN investors can join this case to be notified about potential recovery.
Case Description:

Between October 2021 and March 2022, the hedge fund manager James Koutoulas, Patrick Horsman, the LetsGoBrandon.com Foundation, LGBCoin, and NASCAR  allegedly engaged in a fraudulent scheme involving the launch and promotion of the LGBCoin cryptocurrency token. The token was marketed as a politically themed digital asset inspired by the viral “Let’s Go Brandon” slogan, which gained popularity following a misinterpreted NASCAR interview on October 2, 2021.

Soon after, Koutoulas and co-founders collaborated with cryptocurrency promoters and NASCAR driver Brandon Brown’s racing team, Brandonbilt Motorsports (BMS), to give LGBCoin credibility and visibility. Although NASCAR officials had reportedly declined to approve the sponsorship, LGBCoin and BMS announced on December 30, 2021 that LGBCoin would be the primary sponsor for Brown’s 2022 NASCAR Xfinity Series season.

The announcement triggered a sharp price surge, with LGBCoin reaching a market cap of over $570 million on January 1, 2022. However, just days later, on January 5, 2022, NASCAR publicly stated it had not approved the sponsorship, prompting a swift collapse in LGBCoin’s value. 

Based on these events, $LGBCOIN investors filed a claim against LGBCoin Ltd. and its promoters, accusing the company of the following:
They falsely promoted LGBCoin as a legitimate, NASCAR-backed crypto project to gain investor trust.
They coordinated a pump-and-dump scheme, inflating the token’s value and selling off large holdings for personal gain
Considering all the representations, investors believe they were misled about LGBCoin’s utility, partnerships, and overall legitimacy.

Case Status

Class Certification result

Alleged Offence

Misleading Statements,

Fraud,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Crypto Asset

Trade Direction

Long

Shock Event Date

01/05/2022

Filing date

04/01/2022

Judge

Paul G. Byron

LGBcoin

LGBcoin, also known as "Let's Go Brandon" coin, is a U.S.-based decentralized cryptocurrency project launched on the Ethereum blockchain as an ERC-20 token. The coin was designed to represent suppo...

Symbol

LGB.US