Nelk Boys Ask Judge to Dismiss Crypto Lawsuit Over Unfulfilled NFT Benefits
On Monday, April 21, 2025, Law360 reported that a pair of influencers behind the YouTube channel “Nelk Boys” requested a California federal judge to dismiss a lawsuit filed by a buyer of their crypto product, who claimed that promised benefits never materialized. The influencers, Kyle Forgeard and John Shahidi, along with their company Nelk Inc., and Metacard LLC, are facing allegations from Trenton Smith, who filed the suit in January.
The lawsuit accuses the defendants of leveraging their YouTube fame to promote “Metacards,” claiming these non-fungible tokens (NFTs) would offer exclusive perks and business opportunities. Smith alleges that the full range of promised benefits related to the NFTs did not come to fruition.
In their motion to dismiss, the defendants argue that Smith’s complaint lacks specificity. They contend that he did not identify any statements made prior to his purchase that he relied upon, asserting that “regret does not plead fraud.” The motion highlights that the complaint does not quote any pre-sale statements or provide details about who made them, when, or why they were allegedly false.
Additionally, the suit claims that the defendants manipulated information regarding the NFTs to create urgency among fans, prompting them to invest in the crypto project. However, the defendants countered that they had offered Smith a full refund, which he declined. Their motion states that they publicly invited all Metacard holders to participate in a new initiative or to receive a refund, an offer disseminated widely through social media and other channels.
The complaint details the rise of Forgeard and Shahidi’s YouTube channel, which boasts 8.2 million subscribers and features interviews with public figures such as O.J. Simpson, Donald Trump, and Elon Musk. Following their YouTube success, the duo expanded into various business ventures, including apparel and fitness supplements, under the Nelk Boys and “Full Send” brands.
In January 2022, they launched Metacard to sell digital assets, which they claimed would afford holders opportunities in various ventures like lounges, gyms, and festivals, along with access to products and services. The NFTs were sold on the OpenSea marketplace for thousands of dollars each, reportedly generating over $23 million.
Despite some promotional activities, including giveaways and a performance by Snoop Dogg, the complaint asserts that Metacard holders did not receive the expected returns on their investments. The defendants’ motion states that the complaint fails to explain how any promised benefits fell short and does not specify when these benefits were meant to materialize.
The motion concludes that the complaint describes perks that were delivered within the initial two years but does not assert that no further benefits would be provided, suggesting that Smith’s claims reflect impatience rather than fraud.
Source: Law360
